Hackathons, I believe, are not about winning/losing. They're about learning/picking up new things in a limited amount of time. Losing a hackathon does not mean you should stop programming -- but disliking programming itself means you should. I've lost a bunch of hackathons, but I still like programming and do it everyday. Do not let a competition get in the way of your whole career.
Hackathons are a fun way to demonstrate/test your talents. "Losing" one just means the subjective judges didn't get it. They have nothing to do with what you're capable of.
I just wrote a buggy program, should I stop programming ?
I just failed a business, should I stop being a business man ?
Obviously you should stop because it never worthwhile to spend time on what you like to do :)
The only way you get to any kind of success is generally via a long string of failures, its not the people who never fail that make it its the people who are afraid to fail.
I lost my first love. Should I stop pursuing girls?