Top-seeded Jayaram lost 10-21 21-17 18-21 to second seed Tzu Wei Wang of Chinese Taipei in a close contest that lasted 55 minutes.
Jayaram had won the title of this Grand Prix tournament in 2014 and 2015.
Jayaram made a poor start and he trailed throughout the first game and the closest he was with his opponent was when the score was 10-5 in favour of Wang.
The second game was a closely-fought one and the two players were tied 9-9 but from there Jayaram nosed ahead and led till he took it 21-17.
Towards the end, Jayaram clawed his way back and the secoreline was 18-17 in favour of the Wang but the Chinese Taipei player held onto his nerves in the end to wrap up the match.
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