The young Briton broke his collarbone and several ribs in a fall at a hotel in Magaluf, a resort on the island of Mallorca popular with young British holidaymakers.
His injuries left him with a €37,000 hospital bill which he tried to force his hotel to pay, claiming he had suffered the fall after he slipped by the pool.
However travel insurance investigators then began looking into the incident and came across a video posted online and published by the local newspaper Diario de Mallorca that presents a very different version of events.
The video shows the young man leaping off a stair rail into a tree before crashing to the ground and rolling around in obvious pain.
Neither the British holidaymaker or the hotel where he was staying have been identified.
The incident comes a week after another British tourist died after plunging from the second floor of a hotel in Magaluf.