We report neutron scattering and AC magnetic susceptibility measurements of the 2D spin-1/2 frustrated magnet BaCdVO(PO$_{4}$)$_{2}$. At temperatures well below $T_{sf N}approx 1K$, we show that only 34 % of the spin moment orders in an up-up-down-down strip structure. Dominant magnetic diffuse scattering and comparison to published $mu$sr measurements indicates that the remaining 66 % is fluctuating. This demonstrates the presence of strong frustration, associated with competing ferromagnetic and antiferromagnetic interactions, and points to a subtle ordering mechanism driven by magnon interactions. On applying magnetic field, we find that at $T=0.1$ K the magnetic order vanishes at 3.8 T, whereas magnetic saturation is reached only above 4.5 T. We argue that the putative high-field phase is a realization of the long-sought bond-spin-nematic state.
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