There is no way the contest holder should be given negative feedback in this instance.
It is a shame and very unfortunate none of the design submitted met the holders needs and expectations and that designers spent time on work that was not paid for. That being said, it is a competition and everyone enters it know they may not win/not be paid.
I feel for the holder of this comp.. I have ran competition thread before and have ended up selecting and paying for work I didn't want just because I felt bad for wasting peoples times. Which is wrong considering the competition rules state you do not have to pick a winner if your not happy with any of the entries.
Yes he can go on giving feedback till he is blue in the face. and for some that is the way forward however if you arent close to what he has in mind, I understand entirely why he wouldnt want to waste any more of the designers time.
Don't forget, no one wins here - not even the contest holder, he is still without his completed design.
It's not the end of the world, chill out and move on to the next comp  And well done everyone on their designs, they are great... + another entry for your portfolio and another lump of practise for all the designers who entered... so not a waste of time after all
All the best,
Sir P 
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