Bernard Tomic was knocked out by Pablo Cuevas in the second round of the Valencia Open on Wednesday.
The Australian third seed was a set and a break up against Cuevas but was powerless to prevent the Uruguayan's fightback as he went down 3-6 6-3 6-4.
He moves on to face the winner of Thursday's match between Portugal's Joao Sousa or Frenchman Benoit Paire.
Britain's Aljaz Bedene was also eliminated after losing 6-3 6-3 to Canadian Vasek Pospisil.
Elsewhere, American Steve Johnson defeated Martin Klizan 6-3 6-4, while seventh seed Roberto Bautista Agut of Spain survived a tough encounter against countryman Nicolas Almagro, eventually winning 7-6 (7-1) 4-6 6-4.
In the final match of the day, Russian Andrey Rublev defeated Marcel Granollers 6-4 6-4.