On 12 February 1935, the repair process was still incomplete when, returning to Sunnyvale from fleet maneuvers, "Macon" ran into a storm off Point Sur, California. During the storm, the ship was caught in a wind shear which caused structural failure of the unstrengthened ring (17.5) to which the upper tailfin was attached. The fin failed to the side and was carried away. Pieces of structure punctured the rear gas cells and caused gas leakage. The commander, acting rapidly and on fragmentary information, ordered an immediate and massive discharge of ballast. Control was lost and, tail heavy and with engines running full speed ahead, "Macon" rose past the pressure height of , and kept rising until enough helium was vented to cancel the lift, reaching an altitude of . The last SOS call from Commander Wiley stated "Will abandon ship as soon as we land on the water somewhere 20 miles off of Pt. Sur, probably 10 miles at sea." It took 20 minutes to descend and, settling gently into the sea, "Macon" sank off Monterey Bay. Only two crew members were lost thanks to the warm conditions and the introduction of life jackets and inflatable rafts after the "Akron" tragedy. Radioman 1st Class Ernest Edwin Dailey jumped ship while still too high above the ocean surface to survive the fall and Mess Attendant 1st Class Florentino Edquiba drowned while swimming back into the wreckage to try to retrieve personal belongings. An officer was rescued when Commander Wiley swam to his aid, an action for which he was later decorated. Sixty-four survivors were picked up by the cruiser , the cruiser took 11 aboard and the cruiser saved six.