Able to reproduce this issue on Mac OS using chrome latest canary M54-54.0.2822.0. Observed videos from www.fail.nl goes unresponsive while clicking play button.
 
Tried the same issue on same version by downloading the internal google chrome builds from google cloud platform and observed no issues in playing the videos from www.fail.nl.

Not sure what to do in this case, So requesting someone from flash team look in to this issue?

Can you confirm that this is still an issue in 55.0.2883.0? (Navigate to chrome://chrome to update your browser, restart the browser, and try again.)

If the issue persists, can you try updating Flash?: Navigate to chrome://components and press "Check for Updates".

If the issue persists, I could use more data to debug this. Could you navigate to chrome://plugins, press "+ Details" in the upper-right, look at the "Location" under "Adobe Flash Player", and tell me if that file exists on your computer?

 * If that file does not exist, try deleting that folder where it is supposed to be (e.g. "23.0.0.166") and restarting your browser. Does that fix the issue?

Unable to reproduce the issue in Mac 10.12.1, Win-10 and Ubuntu 14.04 using latest stable  #55.0.2553.75 and latest canary #57.0.2944.0.

Steps followed to reproduce the issue are as follows:
-----------
(1) opened www.fail.nl
(2) selected a fail movie
(3) pressed play
(4) Observed that the movie played without any issues.

Attaching screen cast for reference

Reporter@ - Could you please check this issue on latest stable #55.0.2553.75 by creating a new profile without any apps and extensions and please let us know if the issue still persist or not.
Also plz try to follow comment #2, in case of issue playing video.

Thanks...!!

Deleted: 634702.mp4 3.0 MB

	634702.mp4 3.0 MB View Download

Issue has not been modified or commented on in the last 365 days, please re-open or file a new bug if this is still an issue.

For more details visit https://www.chromium.org/issue-tracking/autotriage - Your friendly Sheriffbot