The state of California canceled a $600 million contract from a politically connected coronavirus-supply company, the largest contract the company has lost in the chaotic marketplace for masks, gloves ventilators and other medical supplies, according to a person familiar with the matter.

Blue Flame Medical LLC, a firm founded days earlier by former Republican fundraiser Mike Gula, on March 26 agreed to sell California 100 million N95 masks, the person said.

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