Besides the whole “private island” thing (when it wasn’t), they made some very specific promises that they made no effort to fulfill. They provided drawings of “cabanas” that were supposed to house people (and which were clearly not tents), but there didn’t seem to be any intention of building them, they failed to provide sufficient food for the expected number of people (which suggests they decided not to spend the money), there was some really shady business with selling the tickets and then trying to sell “extras” that were supposed to be included, etc. Certainly there seems to have been incompetence so severe it’s difficult to draw the line, but the thing is, they did hire some competent planners, only they did so very late and mislead them how much had already been prepared (when nothing had been done), and those planners told them this event was going to have to happen next year because it wasn’t going to be possible this year. But apparently the decision was made - by marketing - to go ahead, knowing that, because they had come up with some great money-making schemes. So at least some people knew they couldn’t offer what they had promised, and didn’t care.
My feeling is that this was a scam that they were too incompetent to actually pull off.