Australian Owen Wright and 11-time world champion Kelly Slater have failed to win through to the round of 16 at the Margaret River Pro.

Olympic bronze medallist Owen Wright went from contemplating retirement to dreaming of a late reprieve on a crazy day of action at the Margaret River Pro.

There were tears aplenty at the WA surf event on Tuesday as the WSL's mid-season axe fell on a number of surfers.

Only the top 22-ranked men will qualify for the second half of the Championship Tour (CT) season, with the rest relegated to the Challenger Series (CS).

Wright, who entered ranked equal 23rd, needed to beat Miguel Pupo in their round-of-32 showdown to guarantee his spot on tour.

But it was Pupo who came up with the goods, producing an early 7.50 ride in the huge conditions to beat Wright 11.50 to 8.93.

It was initially thought the result would demote Wright to the secondary tour.

But in a quirk of the standings, Wright could actually move up a spot on the overall ladder on a countback despite losing in the third round.

If Matthew McGillivray beats Pupo in their round of 16 match-up on Wednesday, then Wright will miss the cut.

But Wright will sneak in if McGillivray loses.

Before a series of results fell Wright's way on Tuesday, the Australian was a shattered man left contemplating retirement.

"I know I'm surfing really well, but I've got a lot of life outside of the tour - kids and wife and what not," Wright said.

"Whatever I do will be a family decision. We'll kind of go through the motions of what's next."

"There's a lot more questions to be had. We'll see what happens.

Eleven-time world champion Kelly Slater also failed to progress to the fourth round at the Margaret River Pro and it could prove to be his final competitive appearance in Australia.

Although the 50-year-old has already secured his spot beyond the mid-season cut, it remains unclear whether he will stay on the CT tour next year.

Slater's two-wave total of 9.24 wasn't enough to beat Brazilian Jadson Andre (12.60) in the 10-14 foot conditions.

Australian Morgan Cibilic, who finished fifth in the world last year, became a high-profile victim of the WSL cut after losing to countryman Callum Robson.

There were more emotional scenes when Brazilian rookie Joao Chianca broke down after being pipped by Italo Ferreira.

The world No.25 now has to turn his attention to the Gold Coast Pro.

"Can I be honest, I really wish I could go home and not do anything right now for the next few days," Chianca said.

"It's all about finding hope in the hopeless. I'm not going to give up so soon. I'm still young and definitely have a lot to learn."

Wednesday will see the completion of both the men's and women's side of the draw.

Bronte Macaulay and Isabella Nichols will face off in an all-Australian semi-final, while American Courtney Conlogue takes on Hawaii's Gabriela Bryan in the other showdown.