This is despite assurances from Waimakariri District Council the site at Pines Beach would be preserved for the community, which has been left devastated.
Pines Beach residents are furious over the destruction with some demanding an apology from those responsible.
The episode has also sent Waimakariri Mayor Dan Gordon into a flap. He is seeking answers from council's logging contractor, which has been pinpointed as the culprit.
The community-built haven, also referred to by locals as "The Shack", was reportedly established several years ago in an area of pine forest at Pines Beach, near Kaiapoi.
Pines Beach resident Jacinta Sutherland said the spot was highly cherished by the locals.
"We're angry ... we were told it was going to be kept and now it's been destroyed.
"I just feel someone needs to be held responsible."
Other community members have described it as a blessing for families during Covid-19.
Waimakariri district councillor Al Blackie said he was "horrified" when he learned of the destruction.
"It evolved over time ... you didn't know what was going to be new," she said.
"It was looked after and cared for."
Her mum Monique Moir, who celebrated her 60th birthday at the site during a lockdown, is calling for an apology to the community.
"I can't believe someone would go in there and just destroy a unique place."
A scrub fire in January 2021, which forced the evacuations of several Pines Beach homes, destroyed dozens of hectares of surrounding forest area. However, the Fairy Forest was unscathed.
A council information notice issued last month confirmed efforts to protect the area as part of ongoing salvage work following the blaze.
'While some damage is unavoidable, every effort is being made to preserve the area - with trees felled and extracted away from it wherever possible."
"[Council is] meeting with them shortly to learn more about what happened and why," he said.
"Our intention is to work with the community to ensure this community treasure is restored."
A similarly popular spot - Methven's Enchanted Forest - has also faced a similar demise recently following complaints.
However, the Ashburton District Council confirmed the feature would remain after fears it would be axed.
-By Adam Burns