They were probably looking for the answer of, "Lets talk through it and figure out a better answer". Coders are often under a mistaken impression that interviewers care about your answer. They don't. They care about how you approach it, how you think through it, what you do when challenged, etc.
So from their perspective, they asked you to try harder on a problem, and you just said, "No." And they dropped you for it.
FWIW, I had similar questions in some interviews where we hashed through similar problems, and together collaborated down to a "No" answer... but we spent 15 minutes exploring the problem and seeing how well a couple coders can work through it before saying no. And I got the offer despite an otherwise rusty performance.