It affected the Australian heavily as he couldn't get over it - which led to him arguing with the umpire during the changeovers and being cleary frustrated on the court.
Kyrgios crashed out to 104-ranked American qualifier Bradley Klahn, with his first-round match marred by a running argument with the chair umpire who suggested his efforts were "borderline".
"You know exactly what I meant, Nick. You have no right to tell me that it's poor", he told the French official.
"I think it's really up to him where he wants to go and what his potential really holds", the 20-time Grand Slam victor said.
Coric, who had failed to win a match in his last two appearances in Beijing and Shenzhen, saved two break points at 3-3 in the second set and clinched the first four games of the decider to record his 32nd match win of the season.
He later cautioned the umpire for his comments towards him.
Kyrgios has been toppled as Australia's number one player with 19-year-old Alex de Minaur moving up to 33 in the world to take top spot for the first time in his career.
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Woodbridge felt it was a pity that Kyrgios couldn't skip Shanghai - a compulsory Masters Series event - given it was the third successive year in which the Australian had gone out of the tournament in controversial fashion.
In that game, in which the un-seeded German dismantled Kyrgios in just 48 minutes, Kyrgios appeared to walk off court before Zverev had completed his service game, leading to a chorus of boos.
He was subsequently fined $US16,500 for his behaviour in the 6-3 6-1 defeat.
He later sarcastically asked Dumusois "was that borderline?" after serving an ace.
Regardless, now ranked 38, Kyrgios will need to work hard to grab a seeding for next year's Australian Open in Melbourne.
He was then fined after he quit his first-round tie against Steve Johnson previous year after losing the opening set.
During last month's US Open, an umpire copped a ban after he gave Kyrgios a freaky mid-match pep talk.