DuckInAPen
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Because they lost their best player for the season. Same thing happened to Cincinnati for the 2000 NCAA Tournament. They had been the dominant #1 team all year but national POY candidate Kenyon Martin goes down in the conference tournament and they get a #2 seed in the dance.
Moving from a 1 to a 2 seed in a 64 team tournament is hardly equivalent to being excluded altogether from a four-team playoff.