I hire based on honesty, competency, and clarity of communication -- in that order. While I can appreciate the deliberation this raises in you, any distortion of your history would negatively impact my perception.
Besides, consider the outcomes:
- If you put it on there and I don't know about the debacle, no harm no foul.
- If you put it on there and I do know about the failure, it would provide an interesting talking point for me -- I could understand your perception, and such perception might be valuable to me in my projects. Perhaps you could help my company avoid similar disasters.
- If you don't put it on there, that opens a big can of worms through which you will have to dance. (Per above.)
In summary: put it on there. Use it to your benefit. Good luck!