Magnetization, magnetocaloric, calorimetric, neutron and X-ray diffraction and inelastic neutron scattering measurements are performed on single crystals of BaCdVO(PO$_4$)$_2$. The low-temperature crystal structure is found to be of a lower symmetry than previously assumed. The result is a more complicated model spin Hamiltonian, which we infer from measurements of the spin wave dispersion spectrum. The main finding is a novel spin state which emerges in high magnetic fields after antiferromagnetic order is terminated at $H_{c1}simeq 4.0$ T. It is a distinct thermodynamic phase with a well-defined phase boundary at $H_{c2}simeq 6.5$ T and is clearly separate from the fully saturated phase. Yet, it shows no conventional (dipolar) magnetic long range order. We argue that it is fully consistent with the expectations for a quantum bond-nematic state.
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