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The exotic normal state of iron chalcogenide superconductor FeSe, whichexhibits vanishing magnetic order and possesses an electronic nematic order,triggered extensive explorations of its magnetic ground state. To understandits novel properties, we study the ground state of a highly frustrated spin-$1$system with bilinear-biquadratic interactions using unbiased large-scaledensity matrix renormalization group. Remarkably, with increasing biquadraticinteractions, we find a paramagnetic phase between N\'eel and stripe magneticordered phases. We identify this phase as a candidate of nematic quantum spinliquid by the compelling evidences, including vanished spin and quadrupolarorders, absence of lattice translational symmetry breaking, and a persistentnon-zero lattice nematic order in the thermodynamic limit. The establishedquantum phase diagram natually explains the observations of enhanced spinfluctuations of FeSe in neutron scattering measurement and the phase transitionwith increasing pressure. This identified paramagnetic phase provides a newpossibility to understand the novel properties of FeSe.

Possible Nematic Spin Liquid in Spin-$1$ Antiferromagnetic System on the Square Lattice: Implication for the Nematic Paramagnetic State of FeSe