Queues for a cashpoint in Southsea stretched down the street when people discovered it was giving customers double the money they wanted.
Police eventually arrived to disperse a small crowd which had gathered around the Lloyds TSB cash machine in Clarendon Road.
It was believed the fault, which meant £20 notes were dispensed rather than £10s, started at 3pm that day.
Word spread throughout the area during the evening as more and more people realised what was happening.
By the time clubbers were leaving nightspots in the area, a small party had started by the errant machine.
Helen Thomas, Lloyds TSB press officer, said: ‘We are looking into how much money was taken but we’ve decided not to ask for it back.’