A particle flow code (PFC) was first applied to examining the mechanical response of a horseshoe-shaped opening in prismatic rock models under biaxial compression. Next, an improved complex variable method was proposed to derive the stress distribution around the opening. Lastly, a case study of tunnel failure caused by rock burst in Jinping II Hydropower Station was further analyzed and discussed. The results manifest that a total of four types of cracks occur around the opening under low lateral confining stress, namely, the primary-tensile cracks on the roof-floor, sidewall cracks on the sidewalls, secondary-tensile cracks on the corners and shear cracks along the diagonals. As the confining stress increases, the tensile cracks gradually disappear whilst the spalling failure becomes severe. Overall, the failure phenomenon of the modelled tunnel agrees well with that of the practical headrace tunnel, and the crack initiation mechanisms can be clearly clarified by the analytical stress distribution.