I too have found some dying of crown rot. I am now thinking that I may have either planted them too deep or they have pulled themselves down into the ground/pot by their root growth and developed crown rot because of the moisture over the crown. It's the constant drying out and then watering, drying out and then watering ..... I think that may be what is causing the problem.
The bed I made using pine fines has had no problems. It has good drainage because of the pine fines. So I am beginning to believe that the crown rot issue to be a drainage problem. I think what confuses me is that everyone writes how much daylilies love water. And it is true. But I think it is HOW they are getting water that may be the problem. Rain water they love. Well water, not as much. Pine fines seems to be the answer for me here where I live. It keeps the ground/potting mix cooler by retaining some slight moisture, but doesn't allow it to become water-logged. That is just my thoughts on this aggravating issue.
And I so understand how discouraging it can be to lose a prized seedling or cultivar. I lost one this year and am still pretty upset by the loss. It was the only one I had at the time that I was evaluating for possible registering and naming.