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Does Cockpit cancel bookings automatically? 

Certainly not! Cockpit does not automatically cancel any booking. Only you, the user, can cancel bookings. And only by clicking on "Cancel bookings". 

The overview of all bookings under "My bookings" shows the status since the last time the list was opened. As soon as an individual booking is clicked by you, the status of this booking is automatically updated in the background. 

If a booking is displayed as active in the overview, but changes to "cancelled" after clicking on it, then it was not cancelled by Cockpit, but in most cases by the airline (e.g. due to a disregard of the specified ticket time limit).