The ''Even After All'' singer is alleged to have caused significant damage to his accommodation during the night and was described by staff as a "lunatic".
The artist was tipped to be one of Britain's biggest stars after winning a BRIT in 1998 for best male solo star but has become infamous for his bad behaviour in recent years.
The Scottish reggae singer's much anticipated appearance at the Old Bakery in Truro on Friday night had been hailed a success on stage with Quaye seen sipping a beer during the show and then swigging a bottle of brandy backstage afterwards.
But witnesses say things turned sour later in the night.
The owner of the B&B where he stayed after the gig described the 45-year-old going on a rampage.
The man, who said he did not want himself or his premises named, said: "He turned up around midnight with a bottle of brandy and was an absolute gent to me, though he did get the wrong house first. He gave me a big hug and I thought he'd gone to bed.
"Our night manager described him as behaving like a lunatic after that. He kicked a hole in the front door, cracking the aluminium, and he called a couple of guests "c***s".
"He did not physically threaten our manager but he was intimidating. He climbed up outside the building and was banging an iron bar, waking everyone up.
"I showed him to his room earlier in the evening when he was a gentleman but during the night he managed to get into one of our other properties and ended up in an empty room. We were very lucky as it was the only room unoccupied. Who knows what could have happened if he'd tried to get into one of the other rooms."
The owner added: "At 9:30 in the morning he walked into the breakfast room, which was full of guests, and shouted, 'Why is there no c****s to snog in Truro?' "He was really aggressive - he was raging and spitting fire. His eyes were like golf balls. He was pretty hanging."
The shocked B&B owner said: "In 12 years we've never had anything like this before - and we've had people like the Manic Street Preachers staying here.
"His musicians were lovely and did their best to calm him down and sort the situation. The guests were all very nice about it too."
Quaye, who won the 1998 BRIT award for best male solo artist following massive hits Sunday Shining and Even After All, has encountered various problems in recent years. In 2012, he was found guilty of aggravated assault. The singer also admitted possession of cannabis in 2003.
The year before that he made headlines when a promoter kicked him off stage for a lacklustre performance in Gloucestershire, saying: "We wish him well but he needs to sort himself out."
Cornish musician Rosie Crow, who supported Quaye at the Old Bakery on Friday and at London's Troubadour in early September, said he clearly needed help.
She said: "Playing with him is like a dream come true as his music meant so much to me growing up. I feel he deserves a break.
"People like Cath at the Old Bakery and the manager at the Troubadour have really helped him and there are other gems looking out for him but he needs more support - he clearly needs some help."
"He's a man in need of helping, saving, love and support.
"What other industry is there where you'd turn up for a shift and be given a bottle of whisky? How is that okay? Imagine if you work at Tesco and you start your shift and say, 'oh I'll have a bottle of Jack Daniels now'."
Quaye declined to comment on the incident.