Organisers at the venue Olivia Valère sold 350 tickets for an event that was claimed to be organised in a Covid-19 secure manner, but things quickly got out of hand.
Although there were 30 security guards on hire, the event was shut down in the early hours of Monday morning.
Authorities found that more than 150 people managed to get entry without a ticket thanks to being let in by people who did have one, meaning the event was way over capacity.
Algerian dancer and rapper Soolking was performing in the venue - footage posted on his social media shows huge crowds rammed into the building.
The Spanish government has said that it will look into a proposal for sanctions which has been put forward by the police force. According to El Mundo, this will help authorities to make a final decision regarding a potential fine.
The club's owner Olivia Valère was quoted as saying: "After three months of confinement, youth need to go out and have fun, but there are some who are a bit wild and crazy."
Measures which were supposedly put into place included limits on numbers - which were then broken - and tables placed over the dance floor, all with hand sanitiser available.
Elsewhere in Spain, the party town of Magaluf has closed down bars and clubs on its main strip until September in a bid to control the virus.
Recent video footage has shown large groups of people openly flouting rules about wearing masks, chanting in the street and even jumping on the top of cars.
Iago Negueruela, who is the Tourism Minister for the Balearic Islands, said that the Punta Ballena area would remain closed as a result of the bad behaviour shown by visitors to the Majorcan party town.
He said the country 'cannot tolerate' the antics of the party-goers.
Angry and saddened Spaniards have shared footage of the crowds roaming the streets singing football chants and waving their arms.
There is a concern among the population that the actions of these tourists could make the sacrifices made by the Spanish people during lockdown irrelevant.
Negueruela said: "I think it's a sufficiently clear message to those practising the type of tourism of excess we don't want here, that they shouldn't come because those types of establishments are not going to be able to open."
Featured Image Credit: Instagram/soolkingofficiel