I don’t know if it can be done with a status or not…

We use a custom field to log why the ticket was closed (i.e. completed, false alarm, user resolved on their own, closed due to inactivity, etc.), and require that be filled in when closing the ticket.

I would do the same as above, that way you can get all the actions from a closed ticket but still be able to filter reports out to produce the cancelled ticket.

I would also do the same as mentioned above. You could also have an automation to set a tag instead like  “Cancelled”, “false alarm” etc.

Hello @MariamP not sure if you need more convincing but I would strongly agree with everyone who has already posted. Using a custom field for “Reason” would allow you to continue to leverage all reporting and automations possible for a “Closed” status.