With the two boats roughly level mid-race, Sweden's Australian skipper Nathan Outteridge slipped and went overboard while moving across the boat.
"It's the first time it's happened to myself or to probably many people in these boats and I don't think it will be the last, either", Outteridge said.
"Once I resurfaced I looked up and sort of made a little prayer and wished the guys best of luck, and hoped they made the cross and could make a couple of gybes, but it's pretty hard, when any person goes overboard, to get these boats around the track".
"Just as I was crossing the centre of the boat we straightened the turn, which had me sliding off the off-beam". I tried to grab some net or a bit of the boat and just missed everything and ended up in the water.
"The main goal is to stay on the boat from now on", he said with a smile.
Burling said such mishaps were "part of it", adding: "I felt like even if he (Outteridge) didn't fall off we would have got that gate (course marker) off him".
New Zealand's Peter Burling took advantage of the mis-step and gained a commanding lead.
Glencore bids for Rio Tinto Australian coal mines
Chartwell Investment Partners LLC increased its stake in shares of Rio Tinto plc by 133.0% in the third quarter. Rio is considering the proposal, which trumps an agreement made with a unit of China's Yanzhou Coal Mining Co.
But in the last race, when they also made the better start, the loss of Outteridge overboard threw the crew and they were unable to get back up to speed and conceded defeat.
We definitely didnt feel like we had it set up quite 100 per cent because the breeze was going up and down, we were kind of chasing it all day.
Earlier in the day Team New Zealand won the first race on their smaller foils - a surprise in the lighter conditions.
Burling said he had done the same thing during practices in the past.
"I can't say we've come away happy today - there's a lot to work on".
Some calming words from Britain's two-time Olympic champion Iain Percy, telling his Artemis crew to "trust their guts", were behind the Swedish challenger's comeback win in the semi-finals of the America's Cup Challenger play-offs.
Outteridge's tumble was the latest mayhem in the challenger series.
- Qatar Airways urges United Nations action against Gulf boycott
- Résultats législatives: déroute pour les anciens ministres de François Hollande
- Planning mercato complet la semaine prochaine — Antero Henrique
- Woman DRAGGED along street by moped gang after refusing to let go of bag
- G-7 Talks Leave Pruitt and USA as Climate Change 'Footnote'
- Cars 3: one final trailer
- Apple makes Mac computers faster, targets professional users
- Attorney General Sessions to talk publicly to US Senate panel
- Tiger Woods DUI auto photos released by Jupiter police
- Cosby's chief accuser denies romance before alleged assault