Given a node of a linked list, delete that node. The expected answer: Copy the next node's contents into the given node. Then delete the next node. Just simply never occurred to me to use a memory copy in a linked list. And this is despite the fact that I could immediately reason about the solution he gave me and point out a flaw in it (deleting the last node is impossible).
1. It's not a normal operation for a linked list. A normal linked list will expose operations to deal with items, not nodes.
2. There was an expected answer, and that answer was something other than the normal linked list delete operation of "traverse the list to find the node containing the item, while also keeping a trailing pointer to the previous item so that you can remove that item's node."
Even if you are exposing nodes, and you do implement the given operation, then TheCoelacanth is absolutely correct that that operation just invalidated all references to the node after the one you thought you had just deleted, but not any references to the node you thought you had deleted. (Though those references are now pointing to a different data instance.)
In that case since you were not hired, either you or the people responsible for hiring made one or several mistakes. Most likely it was multiple mistakes on both sides.
None of those mistakes were "ask a potential hire to do a simple demonstration of ability". Instead it was mistakes (on your part) like getting nervous and choking (something everyone does)...and mistakes on their part like not making the candidate feel relaxed, not providing enough guidance, and placing too much importance on one aspect of the interview...etc