They may have discovered in the interview that he had lied on his resume about his work experience/ education, etc. Getting a free trip by lying would be grounds to cancel any more of the free ride in my opinion.
The only other side of the story that would be ok is literally “OP’s whole story is made up” and the interview never happened. If the candidate misrepresented him/herself then shame on candidate AND shame on company. Otherwise, shame on company.
Why? How? On what grounds?