On Alvaro Arbeloa's debut after replacing sacked coach Xabi Alonso, Real Madrid lost 3-2 at Segunda Division Albacete in the round of 16 tie last night.
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Canizares said on Radio Cope: "Although I don't want to say it, it is a absolute failure from Real Madrid.
"Arbeloa does not want to say that word.
"There is something I like about what he says, that to win you have to lose many times. To achieve success you have to fail many times. But today is grotesque, that's clear.
"The management in general this week, it's grotesque. Many times in football, doing things well, sometimes they go wrong. When you do them wrong you have a higher percentage of things going wrong..."