How to solve "Query failed" error in drush sql-sync output?
The reason you get a 'file not found' error when you run the import by hand is that Drush automatically deletes its temporary files when the command completes. So, the error you are seeing there is different than the 'Query failed' error you are getting from Drush.  Also, note that the --defaults-extra-file contains the credentials for your mysql connection, whereas the file shown at the end of the line is the actual sql dump.

If you'd like Drush to keep the sql file around, you can specify your own location for it; in this instance, Drush will not delete the file when it exits.  Use the option --target-dump=/path/to/mydump.sql.  It is unclear to me from your pasted output above whether or not your %dump option is being respected (since the path used is different than the one shown in your site alias). If %dump is not working, you could try moving this to your target-command-specific options, although if you do this, the key should be simply dump, not %dump. If your sql dump file is not being deleted, then disregard this advice.

If you want to try to re-import your local dump file, you could do this:

$(drush @hpc.local sql-connect) &lt; /tmp/hpc-drupal-dev_20160302_175129.sql

If you do this, you should get the same 'Query failed' message. $(drush @hpc.local sql-connect -d) might give you more information.

The cause of the 'Query failed' message could be a number of things, but it's most likely a mismatch in the mysql version on your host vs. your local system, or (less likely) an encoding mismatch (e.g. if your dump is in utf-8, and that encoding is not available on your local system).