Less than 2,000 tickets were sold for the bout, which was due to take place at the Sydney Entertainment Centre on Wednesday.
There was also slow pre-fight interest from Main Event TV customers which subsequently led to promoter Vlad Warton being unable to find the money to pay Mosley the $700,000 he was promised before stepping foot into the ring.
Warton had already forked out $300,000 to the 42-year-old to get him to Sydney in addition to paying for his entourage to stay at the plush Star Casino Hotel for the three weeks leading up to the fight.
The remainder of the $1 million purse was due to be paid on Monday evening, but after the Las Vegas-based Warton's Millennium Events company failed to stump up the cash, Mosley was ordered by his management group Golden Boy Promotions to fly back to Los Angeles.
Warton, who formerly managed Australian world welterweight champion Kostya Tszyu, was laying low on Tuesday and failed to return calls.
Boxing great Jeff Fenech had been persuaded by Warton to help put on the fight but is now out of pocket to the tune of $460,000 and said he was unaware the former three-weight world champion was due to be paid before lacing up his gloves.
"I was just trying to be nice," the 49-year-old said.
"Vlad Warton told me he needed $US300,000 as a start to getting here, then another $US100,000 for all his expenses, and a little more."
"So I accommodated for all that, and now they've gone home so I'm really left with nothing.
"I gave him $460,000. I certainly wouldn't have done that if I thought the fight wasn't going to go ahead because my guarantee was that when the fight went ahead, the pay-per-view money and the pub and club money that I'd be paid back but now it doesn't look like it."
Mundine was devastated at missing out on the chance to test himself against one of the top fighters of the last 15 years, having finally made the 70kg limit on Tuesday morning just hours before the weigh-in.
It was also the first time in his 45-fight career Khoder Nasser had not promoted one of his bills and the pair now plan to fly to the US this week to try to salvage the contest.
"We will do all we can to try and bring this promotion back to life in our hands ... and we're already in talks with Golden Boy Promotions," Nasser said.
"Anthony is devastated and has waited all his career to fight someone of this stature and someone who has been in the mix with the best fighters over the last five years.
"All I can say is that the fight came about because Vlad Warton was able to deliver Shane Mosley and that was too good an offer to ignore.
"We thought this man could deliver but, at the last minute, it hasn't happened."
Mundine said he hoped his credibility would not be damaged because of the farcical situation and was confident of taking on Mosley before Christmas.
"December would be a great date," Mundine said.
"I'll fly to LA myself and speak to Sugar (Mosley) man to man and give him my word and a bank cheque, if need be, for the amount he was going to get paid in the first place.
"Right now, we want to try and get the best and he is one of the best."