Maybe although I believe they are owned by Pandora and they likely were not releasing funds immediately to the festival organizer. The smart ticketing operators stage the payments out as the promoter hits certain milestones so they don't get caught like this.
If you used a credit card to buy your ticket then you can get a refund period. Having said that, Ticketfly and their bank will probably try to deny you the refund at first but if you stick to your guns you will get your money back. If they argue that you purchased the ticket more than 6 months ago and the credit card policy only goes back that far then you just point out that it is '6 months from the time of delivery of service'. The bottom line is that someone is going to be out money due to the bankruptcy and the lowest common denominator is usually the unsophisticated consumer.
I have gone to a lot of concerts and festivals and despite what your ticket might say about refunds or cancellations, 99% of it is unenforceable and/or violates consumer protection laws.
So what did TicketFly do with money from sales between their last pay-out to Pemberton, and the time they heard it was bankrupt? I presume Ticketfly did not refund that money. They are making people fight for it back. They will use that money to mitigate the losses on the money they gave to Pemberton earlier, and is charged back by credit card companies. So it's still a bit of a shell game.