Jessica Michalik, 15, was crushed to death by the crowd at the Big Day Out event in January 2001, New South Wales' senior deputy state coroner Jacqueline Milledge ruled.
Scores of other fans were also injured in the melee.
She said lead singer Fred Durst should have stopped the performance as soon as he knew something was wrong.
"He should have acted more responsibly," she said.
"I accept it may have been difficult for him to stop because of the intensity of his performing."
She accused Durst of using language was "inflammatory and indeed insulting to the security staff who were engaged in their best efforts to extricate critically injured patrons from the crowd collapse."
The coroner also said festival organisers Creative Entertainment had not properly assessed the risks involved in staging the show.
'Reckless behaviour'
"For promoters to be taken by surpise because their headline act causes excitement and reckless behaviour shows they did not turn their mind to the crowd reaction," she told Glebe Coroners Court.
Ms Milledge said teenagers should be educated about the dangers of crowd-surfing and dancing in mosh-pits - where fans throw themselves against each other.
Big Day Out organisers Vivian Lees and Ken West accepted the coroner's findings.
"I think we do have to take a bit of responsibility for this," Lees said.
"Everyone's had a major wake-up call from this."
But Durst said his band would only return to Australia when concerts were better organised.
"No one is a winner in a court case where a young girl has lost her life," the 30-year-old said in a statement.
"When the industry is properly regulated I look forward to bringing the Limp Bizkit band back to Australia."
Formed in Florida in 1994, Limp Bizkit's mixture of rap and heavy metal saw them become worldwide stars after their 1997 debut album Three Dollar Bill Y'All, and a cover version of George Michael's hit Faith.