Carvair 66.
EU Regulation 261/2004 isn't that complicated but it is effectively divided into two different bits.
1. In the event of a
cancellation, or a long delay, the airline (including their handling agent) MUST provide 'care'. Care is food and beverages in relation to the delay; hotel if appropriate and transfers to/from the airport.
2. Cash compensation for a
cancellation under some circumstances, which can be waived due to 'extraordinary circumstances. (The ECJ has 'extended this to long delays, in some circumstances ... but lets not go there today)
I'm not going to debate if the situation warranted a waiver of the cash compensation, but nothing waives the provision of care. They have no choice, they must provide this in all cases. If I were you I would send a written complaint to Squeezy asking why their handling agents were unaware of the Regulations provisions, and why they did not provide the care that they were required to (in all cases). If you get no jolly, contact the
Airport User's council who are the UK's National Enforcement Body.