The makers of Skyfire, an iOS app which renders Flash video into iPhone- and iPad-ready HTML5 format, halted sales just five hours after Thursday's launch.
"The user experience was performing well for the first few hours, but as the surge continued, the peak load on our servers and bandwidth caused the video experience to degrade," explained Skyfire's Robert Oberhofer.
The app promised to solve a frustrating problem for Apple's mobile device customers with Skyfire's app presenting a "kosher" workaround to Apple boss Steve Jobs' ban on Adobe Flash format video.
Skyfire has circumvented the Flash ban by taking the file and rendering it into HTML 5 format on its servers.
According to Oberhofer Skyfire for the iPhone became the top grossing app, outselling the wildly popular Angry Birds game.
The app will be sold again once Skyfire boosts its server and bandwidth capacity, he said.
The free app, Flipboard, which renders social media streams into a magazine format, experienced similar problems when thousands of people rushed to log-in to third-party sites such as Facebook and Twitter.
Within 24 hours Flipboard's makers updated the software, adding a queueing system that controlled the inflow of users attempting to log-in.