Novak Djokovic lost on his return to competitive tennis to Taro Daniel in the BNP Paribas Open at Indian Wells.
Daniel, ranked 109 in the world, claimed the biggest win of his career as the qualifier prevailed 7-6 (7/3) 4-6 6-1.
Japan’s Daniel won the first set on a tie-break before Djokovic, making his return from an elbow injury, took the second.
However, 25-year-old Daniel dominated the third and final set to take it 6-1.
Daniel, who beat Britain’s Cameron Norrie in the first round, will meet Leonardo Mayer, who beat Ruben Bemelmans 6-4 6-1.
British number one Kyle Edmund was beaten in straight sets by Israel’s Dudi Sela 6-4 6-4 in his first match since reaching the Australian Open semi-finals.
Edmund, who has been out of action with a hip injury since his brilliant performance in Melbourne, led 3-1 in the opening set and had two break points to go further ahead.
However, world number 97 Sela dug deep to hold serve and immediately broke Edmund to get back on level terms before another break in the 10th game secured the set.
Sela also took the second set by the same score to seal a 6-4 6-4 victory in 91 minutes against world number 24 Edmund, who replaced the injured Andy Murray as British number one earlier this month.
Also through to the third round are Roger Federer, who beat Federico Delbonis 6-3 7-6 (8/6) in one hour and 43 minutes, while Juan Martin Del Potro took just under 70 minutes to beat Australian Alex de Minaur 6-2 6-1.
Marin Cilic is also through after a straight sets win over Marton Fucsovics 7-5 6-3 and Milos Raonic beat fellow Canadian Felix Auger-Aliassime 6-4 6-4.