Adult daughter "ran away"

Sorry this is a bit long:

My daughter is 19yrs old. She has always been a difficult child to work with (becomes verbally combative and sometimes physically) and she has always claimed that she is caged and nobody lets her be her (I think most kids feel this way).

She hasn't finished high-school due to feeling that its too much work and that the teachers were just too bossy. Ok fine. I enrolled her in an online program to finish it from home. All she wants to do is play video games. She did start to get more responsible for a minute but then it became "I'm running away and don't stop me" if she was asked to clean her room, dishes, get a job or help out in any way.

She has run away several times as a minor and was hospitalized by the police and then sent to a behavioral facility by a doctor at the hospital. She spent 2 weeks there.

Since I still pay for everything, when she became an adult I made a rule of "If you don't finish your school work for the day to get your HS diploma, shower, brush teeth and clean room by the time I was home from work, I would turn off access to video games." She would play video games all day instead and never complete anything for months. So then I changed it to complete everything to gain access but its off when I'm at work. If she didn't like it, she could get a job and pay bills. She tried to get a job but always ended up getting fired or removed from the schedule because she would get upset about something and then have a panic attack and have the ambulance called on her. Sometimes I feel that she just likes doing things for attention or to get out of doing something but I'm not 100% so never did anything to reprimand her for it, only just keep trying to help her get it done.

She was supposed to be on medication but when she turned 18 she decided she didn't want to be anymore. I disagree with this decision but I can't force her.

Now she's met someone that commits fraud all the time using other people's information to receive money from the state. This person convinced my daughter that to live a "free" life and get money without responsibility so she can play video games all day, all she had to do was tell the police that I was keeping her trapped in the house and wouldn't let her play her video games whenever she wanted and give this person all of her personal information along with the information of our family members.

So this person showed up and helped my daughter "run away" (I used quotes because she's legally an adult and always had freedom to come and go). Her friend also convinced her that me keeping her from playing games and making her have responsibility was illegal and shows that I am controlling and need to be in jail to learn my lesson because she was an adult and I'm not allowed to make rules on her like that. My daughter actually went to the police with her friend to turn me in, I was called and asked my side of it. My heart is broken because I heard my daughter claiming that I was a horrible person and that she genuinely wants me in jail for this to learn I was wrong and tell her that I'm sorry for hurting her.

Was I truly wrong for withholding video games since she was an adult even though I was paying for everything? I only want the best for my child, I feel that finishing high-school will help her tremendously in life. She was never mean spirited before she met this friend, she was a very sweet child, just difficult and had a hard time accomplishing anything on her own. Now it's like she's another person completely. I'm completely lost and police won't help. We used to have an extremely close relationship and she always wanted to be with me. I started working more. Now she hates me like a drastic day vs night situation? Have I lost her?