Airlander 10, a hybrid airship that is part-plane, collapsed in Cardington Airfield, Bedfordshire, following the incident at about 9.30am on Saturday.
Pub landlord and councillor Paul Smith said: 'Sad news for Airship fans, The Airlander has broken free from its mast this morning and has deflated.
Manufacturer Hybrid Air Vehicles (HAV) said it was investigating why the £25 million aircraft broke free, adding its hull was created to rip open and deflate in the event of coming loose.
Footage taken at the scene shows the deflated aircraft slumped in the field.
The aircraft first crashed in August 2016 when its mooring became entangled in nearby power cables, which caused damage to its front deck.
"A number of local roads and a local footpath were temporarily closed off by Bedfordshire Police and we apologise for any inconvenience this has caused local residents".More news: Watch Chance The Rapper Host Saturday Night Live
The mishap follows the £25m aircraft's first flight in May after it crashed in August previous year. The aircraft was not flying, or scheduled to fly at the time of the accident.
The Airlander 10 took a test flight Friday (16 November) at 15.11 GMT and landed successfully at 16.18 GMT at Cardington Airfield.
According to Hybrid Air Vehicles Ltd, the aircraft was not flying at the time of the incident but instead was on its mooring masts.
The company says the aircraft has been secured, and the fuel and helium it was carrying have been made safe.
Nicknamed "the Flying Bum" because of its appearance when viewed from behind, it was originally developed by the United States government for use in surveillance before cutbacks saw it shelved.
HAV believes it could be used for a variety of functions, such as surveillance, communications, delivering aid and even passenger travel.