It's easy to spin a failure into a learning experience, that's a familiar story arc for everyone in the hiring process. My second job was a massive failure (with a public IPO and everything), doesn't seem to have hurt. I even got a job because of it once.
I don't know why it's so hard to get a job when you are already unemployed. I think there is even MORE bias about that around here than age. This article might be about age, but I suspect that is probably more your problem here. I'm not sure the best way out of that particular hole, but if you can get any kind of a consulting or freelance gig, that might help. Then you can just smooth over gaps with the "freelancing" qualifier and talk about how you're really interested in something long term / stable, especially after the volatility at the last place. Hopefully you can find employers who are nervous about someone sticking around for a couple of years, reassure them that's what you are interested in (even if it's not). If you drop me an email, I can forward you to a couple of recruiters who have contacted me in the last week or two.