After pitching a tennis ball into the back wall with an angry throw, Kyrgios lost it when opposition duo Marcel Granollers and Horacio Zeballos secured the break.
Kyrgios destroyed his racquet and was handed a code violation warning.
Aussie legend Todd Woodbridge told Channel 9 Kyrgios was lucky not to be given a second code violation for his explicit language.
The real drama came at the change of ends when Kyrgios berated the chair umpire to control the fans that appeared to be yelling out during his service motions.
The heckling in the middle of a service motion is something Kyrgios has encouraged from his fans all tournament — just not when it is his turn, apparently.
The extraordinary hypocrisy in his words were not lost on Aussie tennis commentators.
Woodbridge described it as "a little contradictory".
Former Aussie player Sam Groth said: "Kyrgios unhappy with the crowd yelling between serves. Not very different to what we have been hearing all week, to be honest.
"Maybe it is acceptable on Kia Arena and not Rod Laver Arena."
Other Aussie sport commentators including radio personality Mark Levy were even more scathing.
"Nick Kyrgios wants the chair umpire to control the crowd that he whips into a frenzy. That'll do me," he wrote on Twitter.
"I'll tell you the real problem Nick, you're a sore loser when things aren't going your way.
"Keep composed BRO!!!"
English tennis correspondent Stuart Fraser wrote: "Can confirm that Kyrgios is flipping his lid in the Rod Laver Arena. Has twice roared at Aussie fans for shouting out before his serve."
TV microphones captured Kyrgios barking at the chair umpire, saying: "How many times? How many times will it happen before you do something. The ball gets thrown up and they go again and again and again and again, four times".
Kyrgios was up to his usual antics from the start of the match. After the very first point he was gesturing for the crowd to get into the contest.
Granollers and Zeballos won the first game as a chant of "Aussie! Aussie! Aussie! Oi! Oi! Oi!" rang out. After Kyrgios opened his first service game with an ace, the familiar cry of "siu" erupted.
However, the big difference between Kia Arena and Rod Laver Arena was also clearly visible throughout the first set with the crowd refraining from cheering or heckling in the middle of Granollers' and Zeballos' service actions.
There was even a cheer from inside the arena when the chair umpire asked for fans to "keep it clean and fair" during the first set.
They were better behaved than any crowd Kyrgios has played in front of this tournament — and it just happened to be the one he disliked the most.
