Madison fell behind 5-0 on Tuesday and was never able to recover in its first loss at the Babe Ruth 16U Softball World Series in Jensen Beach, Fla.
Madison dropped a rematch of the 2014 championship final to Lodi (Calif.) by a 5-3 score.
Hannah Jennings and Savannah Rice each had two hits for Madison (4-1), which can only afford one more loss in the double-elimination tournament which runs through Thursday.
Brooks Vilcinskas added two RBIs.
Lodi (5-1) was able to open up a 5-0 lead after 2.5 innings and never looked back.
Madison is the defending 16U World Series champion.