Balogun arrived in Merseyside at lunchtime to complete the £40m Deadline Day transfer, but doubts began to emerge that the deal would be completed after an issue came up in the medical.
As a result, Monaco moved to sell midfielder Camara instead, but in another twist, Everton renegotiated Balogun's deal to force the move through.
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Despite having a full agreement to sell Camara to Chelsea in place, Monaco withdrew from the deal as the 11pm transfer deadline passed, which left the Blues furious.
Chelsea also had the chance to withdraw from the £125m move to sell Enzo Fernandez to Man City, but chose not to out of good faith.
However, just after midnight on Wednesday, it was revealed that Balogun had a change of heart about moving to Everton and walked away from the deal, which only infuriated Monaco and Chelsea even more.
It also means Balogun's dramatic 2026 continues - after the American international was at the centre of the World Cup red card storm involving Donald Trump.
It leaves Everton with just one recognised senior striker until January in Thierno Barry, after Beto left for Fiorentina and Manchester United rejected a loan offer for Joshua Zirkzee.
Everton's attacking options were further diminished by the departure of Iliman Ndiaye to Manchester City, but they did sign Jack Grealish on another loan deal.
The Balogun drama in chronological order
Everton agree fee with Monaco for Folarin Balogun.
Balogun arrives in Merseyside for a medical and to complete the move's formalities.
Chelsea have multiple bids rejected by Monaco for Lamine Camara. They consider other targets.
Chelsea agree deal to sell Enzo Fernandez to Man City for £125m. Comfortable with the options in their squad if no one comes in.
Doubts emerge around Everton's deal for Balogun.
Everton make an offer to sign Joshua Zirkzee from Manchester United on loan with an option to buy.
Chelsea agree a deal with Monaco for Lamine Camara, amid doubts about the Balogun deal.
Manchester United reject Everton's loan offer for Zirkzee.
Everton grow more confident they can get Balogun over the line after renegotiating with Monaco.
Chelsea's deal to sign Camara collapses after Monaco withdraw from the deal. The Balogun deal being back on satisfied their need for a sale.
Balogun had a change of heart and walked away from the deal after a deal sheet was submitted.
Analysis: 'Balogun saga caps chaotic summer window'
Sky Sports News' Vinny O'Connor:
"That's Everton that!
"But how have they got to a situation where they've halved a strike force that was far from prolific anyway?
"Easy to say in hindsight but allowing Beto to go to Fiorentina before a deal for Folarin Balogun was signed and sealed now looks amateur at best.
"The unsuccessful pivot to Manchester United's Joshua Zirkzee when the Balogun deal initially faltered just adds to the feeling of a chaotic and panicked end to the window.
"Add to that the sale of their most exciting talent, Iliman Ndiaye. All window, it was emphasised Everton were in a position of strength given he had three years left on his contract.
"Yet, a £65m deal was agreed, more than four times what they had paid for him two years earlier. But the fee was still not high enough to make the deal acceptable to many fans.
"Of course Ndiaye was initially off to Spurs for £60m with Richarlison coming the other way for £35m. A fee for the Brazilian that, even taking into account the esteem in which he's held by the blue half of Merseyside, appeared to be on the high side and ultimately was the first of Everton's proposed deadline day deals to fall through.
"Kenny Tete was another. Fulham weren't letting him go without knowing they definitely had a replacement - a lesson in that, perhaps.
"So, a tumultuous end to a window that has been far from easy when you consider the club's ownership mulling over Nottingham Forest's £40m offer to buy Harrison Armstrong at a time when David Moyes was talking up the need for getting players in.
"After turning down big money, the club will surely want to safeguard what is effectively an investment and show of faith in his potential whilst avoiding the risk of value decreasing as his current contract runs down.
"And Evertonians could do with some positivity. At the moment, they are hurt, embarrassed, angry, frustrated, and concerned, when the facts are that it didn't need to be like this.
"Ainsley Maitland-Niles is someone who can cover both full-back positions and possesses a versatility that's much needed in David Moyes's squad.
"And, of course, there was the expected return of Jack Grealish on loan, much needed following the departure of Ndiaye.
"Earlier in the window, there was arguably a parallel with David Moyes's first spell in charge, as Hayden Hackney,the Championship player of the year, was given the opportunity to show he can make the step up to the Premier League. His first showing against Crystal Palace was promising.
"From a top division rookie to the more established, Christian Norgaard may prove a crucial piece of business, bringing his experience to the midfield with Idrissa Gana Gueye having left at the end of his contract.
"Add to that the decision to insert an obligation to buy in the loan agreement that brought Merlin Rohl to Hill Dickinson last season, and Tyrique George rejoining on a permanent deal after last season's temporary spell are two more positives judging by their early season contributions.
"However, potentially the best move of Everton's summer was the swap deal that saw Dwight McNeil leaving for Palace and Brennan Johnson coming the other way. McNeil was in the final year of his contract.
"Unfortunately, the positives mentioned are more than overshadowed by the fact that the manager has, again, not been given the tools that will give him the best chance of delivering success.
"Last season it was the failure to bring in a right-back and a proven striker. This season he has to muddle through until at least January with Thierno Barry as his only recognised front man.
"Given the circumstances, it's difficult to see them muster a challenge for Europe, and if that is the case, it shouldn't be seen as a failure."
What next for Balogun after difficult summer?
Sky Sports' Peter Smith:
Balogun had personal ambitions to join one of Europe's biggest sides this summer.
After an in-form finish to last season and a match-winning start to the World Cup, where he was celebrated in the USA as a new hero, Balogun's star was certainly on the rise.
There was also a feeling that this was the time for Monaco to make the most profit on a player with just two years remaining on his contract. A big transfer beckoned.
But his red card and the controversy of a President Trump-encouraged lifting of the subsequent suspension shifted his narrative. It wasn't Balogun's fault he was at the centre of the storm, but he had to ride the rough waves of it.
After the tournament, offers from Europe's elite didn't materialise, despite Balogun changing agent. A transfer to Everton was not what Balogun had imagined at the start of the summer.
During his time at Monaco, Balogun has enjoyed the challenge of playing on the continent and in the Champions League. The lure of the Premier League is not as strong for the former Arsenal academy graduate as it may be for others, despite other clubs from England's top flight also having held an interest in signing him.
This latest call is of his own making, though - and he will have to take the repercussions of it. But what Balogun does now is far from certain. For the second time this summer, he has been involved in a dramatic twist in a tale.
