Hotwire says:
All bookings are final and cannot be changed, refunded, exchanged, cancelled, or transferred to another party;
They may be after you for transferring reservations to another party. I'd use this to say Hotwire doesn't have the right to cancel your reservation.
The above conditional statement from Hotwire is explicitly directed at the user. It does not restrict Hotwire from doing what is necessary [in their eyes] to enforce and deter fraudulent bookings/reservations.
Under Section B of their ToU:
Hotel Booking Restrictions
.....
Upon check-in, guests must present a valid ID and credit card in their name (the amount of available credit required will vary by hotel). Debit cards may not be accepted; and,
Hotwire rates do not include special fees charged by hotels upon check-out (e.g., energy charges, convention fees, resort fees, parking fees). Customers will be required to pay these fees directly to the hotels at check-out time.
Essentially, not only does the Terms of Use provide Hotwire the ability to restrict/refuse/cancel service at their discretion, but it further states that debit cards are not an acceptable form of payment when authorizing incidental hotel room charges. If you authorize your hotel room using a debit card, Hotwire reserves the right to view the transaction as fraudulent. THIS may be the fraudulent activity they are referring to...