Unfortunately, that is not that case, Zoran. To not win an offer due to financing contingencies is part of the negotiation process... and losing a deal to a lower cash offer can happen. There is no standard rule as to which offer is accepted and on what basis. From the seller's perspective, maybe the cash offer was a better deal due to a culmination of variables in this market. For cash offers, the following are some things to consider regarding acceptance over a higher financed offer:
1. there is much less of a waiting period to close the deal so it lowers the cost to carry for the seller.
2. The seller is likely aware that the financing available today is not as reliable and much less available so he/she would want to avoid the hassle of the financing process...as the deal could potentially have a higher probability of not closing in the seller's mind.
3. The seller is in a pinch and needs to close as quickly as possible, hence, the lower offer with cash may be satisfactory enough.
There are many more possibilities than this as well. Sorry to hear you missed a good opportunity but, realistically, it means that something better is to come. Keep looking. There are many opportunities out there. If any further guidance is needed, a private email or call is best. Good luck.