The thing started as a “Geshmake” idea, some Eretz Yisroel chassidim did after the music in Stolin way back…
Way back those days (40+) no one had any festivities besides Stolin and maybe some other very few. They danced in Stolin for 3 – 4 hours straight, until about 12 – 1 and then went home. The Eretz Yisroel Yungeleit and Bochurim wanted a taste of Meron, so after everyone left, they lit a fire in a trash can and sang the night away…
After a few years of doing it that way they made it more official. And gave it more focus.
And the rest is history.