There have been angry scenes outside court after the case against Shrien Dewani, who was accused of plotting to murder his wife Anni on their honeymoon, was dismissed.
Judge Jeanette Traverso said prosecution arguments had "fallen far below" the level needed to a secure conviction, paving the way for Mr Dewani's acquittal.
Mr Dewani, of Westbury-on-Trym near Bristol, denied arranging the murder, and said his 28-year-old bride, whose maiden name was Hindocha, was killed during a botched carjacking in Cape Town in November 2010.
The Hindocha family claimed after the ruling that the South African justice system has failed them. In a statement outside court, they said: "We feel really, really sad because we have not heard the full story. Shrien lived a double life."
Mr Dewani, who is now free to return to the UK, breathed a large sigh of relief as the judge cleared him.
Members of the 34-year-old's family wept and embraced as he quickly left the dock. Anni's family bowed their heads as shouting was heard from the public gallery.
The state's key witness, cab driver Zola Tongo said Mr Dewani paid him to hire two men to carry out the murder.
The prosecution claimed Mr Dewani, who is bisexual, wanted to get out of the relationship.
Tongo, Mziwamadoda Qwabe and gunman Xolile Mngeni have already been convicted for their part in the murder.
Giving her ruling on an application by defence lawyer Francos van Zyl to dismiss the case, Judge Traverso said the evidence from the three men was "so improbable, with so many mistakes, lies and inconsistencies you cannot see where the lies ended and the truth begins".
She added that the only reason not to grant the application would be in the hope that Mr Dewani would implicate himself during the course of his testimony.
However, to do so would be a "manifest misdirection", Judge Traverso said.
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