Gwên Gwen Festival has been cancelled hours before it was due to start, with organisers saying weather problems had delayed the site build.
The event in Kidwelly, Carmarthenshire, was to run from Friday to Sunday.
Organisers said they were devastated after spending nine months preparing the show. Earlier on Friday, headliner Example pulled out of his Sunday slot alleging contract breaches and full fees not being paid.
Example's Instagram story post raised also concerns about the lack of communication with organisers. He added: “The promoter of this event has breached a number of points in the contract.
“We have had zero communication regarding the stage, technical and backstage setup.
“Something we cannot just turn up to unprepared and essentially would be going into the show blind.”
The BBC has asked the festival for comment regarding Example's post. The festival line-up was also to include Dub FX and Aleighcia Scott.
The statement from organisers said over the past week they had been working “under extremely challenging circumstances with weather making the site build difficult and as a result of these challenges and the associated added extra costs, we have made the very difficult decision to cancel the event”.
They added: “This is not a decision we have taken lightly and sincerely apologise for the disappointment this will cause.
“We want to thank all the ticket holders, volunteers, artists, traders, contractors, security and everyone who has helped under extremely difficult circumstances and gone above and beyond to make this work.” They added that all refunds were being processed and a further statement would be released on Monday.
— CutC by bbc.com