It seems like you did really well, but there just wasn't enough funding. I'm really sorry to hear that. These academic processes elicit a lot of those type of feelings. Still, I hope you try to remind yourself that there is a lot of arbitrariness to these processes. I know people who submitted the same proposal a year later and were suddenly successful. (In one case, someone I know simply translated their proposal from one official language to another and boom - successful). That speaks to just how arbitrary this can really be. All that to say, this is not a reflection of you or your work. The fact that you're in your program is already a huge accomplishment. I wish you all the best in your studies!