>>58788013He lost because he refused to adapt. Guzma is Gamefreak's caricature on people who see Gmax/Zmoves/MegaEvos as 'newfangled zoomershit' and refuse to interact with them. That is literally why he gets his ass handed to him, aside from his+his bugs phobia of losing.
Furthermore, thats the only place his character can go. Its fucking stupid in a Shonen, I know, but if his defining trait is that he hates loss and is ruthless, and he never loses, we're done. Thats it. The character is can't go anywhere. He was set up from the start to eat shit at one point or another, at least in the anime, and the only logical conclusion was for him to take a loss on the chin for once from the very thing he refused to employ.