UK Politics
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Because he was headlining all 3 days. There is not a chance of getting 3 acts of similar clout to play at this short notice. At which point the event is far enough from what was advertised that they'd have to give refunds to the shitload of angry customers demanding them. Better to just cancel now.
Also it was speculated elsewhere that Kanye may get paid (by contract) if the festival happens, but not if the festival as a whole is canceled. It's speculative, but reasonable to assume Kanye had strong contract guarantees.