Feller had a full 0.85 to go on leading Swiss Daniel Yule when he set off on the hill in the second run but was already straddling before reaching the first split.
Schwarzenegger shook his head in disappointment in the goal net.
Feller quickly continued to chase his first podium in the Kitzbühel slalom where 20,000 spectators today followed him on the spot.
- I gave everything and I don't know if I will ever come here with as good a starting position.
That's why I decided to attack fully, says Feller in Austrian ORF's broadcast.
There were mixed feelings for victorious Daniel Yule in the goal net.
- It is so sad for "Felli" who does so well.
He's always attacking and straggling is never nice, but I'm very happy with my victory, of course," said Yule, according to the AP.
There is always a lot of pressure on Austrians, especially when they compete at home.
"Has happened to Austrians before in decisive situations"
- It has happened to Austrians before in decisive situations, but oh so hard.
It was too much, says SVT Sports commentator Johan Ejeborg.
After starting the year by failing in the first three slalom competitions, Kristoffer Jakobsen made it to the finish line and put an end to the boring streak.
It was safety first that applied to the Swede who was 24th in the first race and climbed to 20th place overall.
28-year-old Jakobsen took the finish line for the first time in Kitzbühel and took a small step back to stability.
- It's a perfectly okay ride, but you miss that speed you know he has in his body, says SVT's expert Pernilla Wiberg.
On February 6, the Alpine WC begins in Courchevel, France.