Excelsior Modular hotels had signed up for a pop-up hotel at Scottish League One side Airdrie's Excelsior stadium, but it has now been shelved.
A spokesman for Excelsior Modular hotels, which signed up with the stadium to provide accommodation last year, said they were contacted "out of the blue" by the stadium to say it couldn't now go ahead.
A total of 43 volunteers had signed up to stay at the stadium site in Craigneuk Avenue.
The spokesman said: "We've been through planning, we've got permission and we had agreements in writing."
He claimed the stadium did not give a reason for the cancellation, other than "too many inconsistencies in the dialogue to give this any further time or credibility."
They were told the deal "no longer worked."
Gillian Smith, 59, from the Isle of Wight, is one of those now faced with a desperate search for somewhere to stay.
She is due to volunteer in the press tent at the Games and planned to arrive on July 21.
Gillian said: "We are 500 miles away and not sure what to do. We are in panic mode.
"My husband and I are bringing a camper van and the sites around Glasgow are all booked up. We booked with Excelsior a few months ago because they said they could take camper vans."
An announcement on the Excelsior website says money will be refunded if people send details of their bank accounts as it does not hold bank details on file.
Gillian, who paid £195, has not heard anything from the company and is reluctant to send her bank details.
Kim Nelson, 26, of Fife, is a volunteer with accommodation but is trying to help those who have been hit by the bad news.
She said: "People are getting in touch from all over the UK. A lot of my friends are affected. I'm trying to find accommodation for them and want to put out an SOS."
A spokeswoman for Glasgow 2014 said: "We are currently working with relevant organisations to highlight any alternative accommodation options available."
No one at Airdrie Stadium was available to comment.