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First of all, sit back and recollect yourself. When your mental health's not in the right place, you make poor decisions and lack the ability to act on things. You would also be more likely to miss opportunities that may present itself because of the lack of confidence. This was setback, nothing more or less than that.
As for hirings, law firms love exploitation, especially the ones outside the big 6. I'd personally suggest to try and look for something like assessment internships or paralegal positions, and go ahead only with places that have openings. Talk to the people in the team or at that workspace, and see if they have any leads on this. Else, it will be the same old trick of misusing you as cheap labour for another 6 months. It is difficult, but the better alternative.
At the same time. Keep applying. Not just at law firms, but for in-house roles too. Not just in Mumbai (that city's shit expensive), but in Delhi, Hyd, Blr as well. Being from a T- NLU myself, I understand the hype that comes around big firm hirings and brand value. While that could be a priority, don't chase just that and find yourself resourceless after a few months. It's a crucial phase for you. Nothing to panic, just be smart about your decisions- and half of that would start happening the moment you take a step back and look things for what they are instead of the emotional burden and anxiety of your world falling apart.
Stay strong. May the force be with you.
I am not sure if it's the best advice to work as an intern or a paralegal for the long term either, since a lot of times people do not get absorbed. But since firms have been moving towards this trend of hiring only interns for fresher roles, I think it'll give you a better shot. Just try to be vigilant, do your checks thoroughly and don't fall for a firm or team that is known to be exploitative in general.
I feel because you're overwhelmed, you might not be applying enough. Ultimately, you do have the T-1 tag and a (revoked) offer. Might take a while but you still have an edge.