i gave up trying to get anything fixed with hotwire directly, and filed a complaint with the BBB. here's the response i got today:
Dear jws026,
I am writing in response to your inquiry to Hotwire and the Better Business Bureau regarding a hotel reservation in Melbourne.
I understand you booked a hotel reservation on our Web site. During your stay, your key card was deactivated and the hotel advised you it was deactivated because Hotwire had canceled your reservation and would not disclose the reason for the cancellation. You were referred to a Risk Management department when speaking with Hotwire Customer Care and have not received a return call from the voicemail messages you have left for that department. You are demanding an explanation of the reason for the cancellation of your hotel booking and the deactivation of your account. Additionally, you would like compensation for your frustration.
According to our records, the unused nights of your hotel reservation have refunded to your MasterCard ending in ****.
User access to all or part of the Hotwire Web site may be terminated or suspended at any time, without notice and for any reason.
I am unable to disclose information regarding the deactivation of your account. I regret the frustration and inconvenience this has caused.
Regards,
(name removed)
Customer Care Relations
Hotwire Corporate Office

not sure what to do at this point.