  We report on a Chandra/HETG X-ray spectrum of the black hole candidate MAXI
J1305-704. A rich absorption complex is detected in the Fe L band, including
density-sensitive lines from Fe XX, XXI, and XXII. Spectral analysis over three
bands with photoionization models generally requires a gas density of n > 1
E+17 cm^-3. Assuming a luminosity of L = 1 E+37 erg/s, fits to the 10-14 A band
constrain the absorbing gas to lie within r = 3.9(7) E+3 km from the central
engine, or about r = 520 +/- 90 (M/5 Msun) r_g, where r_g = GM/c^2. At this
distance from the compact object, gas in Keplerian orbits should have a
gravitational red-shift of z = v/c ~ 3 +/- 1 E-3 (M/5 Msun), and any tenuous
inflowing gas should have a free-fall velocity of v/c ~ 6 +/- 1 E-2 (M/5
Msun)^1/2. The best-fit single-zone photoionization models measure a red-shift
of v/c = 2.6-3.2 E-3. Models with two zones provide significantly improved
fits; the additional zone is measured to have a red-shift of v/c =4.6-4.9 E-2
(models including two zones suggest slightly different radii and may point to
lower densities). Thus, the shifts are broadly consistent with the
photoionization radius. The results may be explained in terms of a "failed
wind" like those predicted in some numerical simulations. We discuss our
results in the context of accretion flows across the mass scale, and the
potential role of failed winds in black hole state transitions.
