Obvious question need to be asked - Why are issues being noted with the new home so close to closing?
Not knowing the full story and not being your agent precludes a pointed response, but in general terms:
If you fail to close, you have not met the contractual obligations that you agreed to. I would expect the buyer could sue for nonperformance, damages, expenses and any other things they could toss in. I expect agents will also pursue commissions - especially in this market.
If you try to punch on the home you're buying, you may also have issues if you're outside the due diligence period. Bottom line for the buyers of your home is that they have no concern about the issues with the home you're buying - they expect to close as scheduled.
Beyond that, you need to work with your agent but if you being in this situation is an example of their handiwork, an attorney might be a better source. I'd suggest figuring out a solution that doesn't involve canceling closings - that tends to get ugly.