SUDIRMAN Cup hosts and third seeds Malaysia were knocked out in the group stage of the 13th world mixed team badminton championships on Wednesday, after losing 2-3 to ninth-ranked Germany in one of the biggest upsets in years.

Michael Fuchs and Birgit Michels had given the Europeans a great start at the Bukit Jalil Indoor Stadium by beating Chan Peng Soon and Goh Liu Ying 21-17, 18-21, 21-17 in the mixed doubles.

But world No.1 men's singles Lee Chong Wei beat Dieter Domke 21-18, 21-18 to take Malaysia level and Lim Khim Wah and Goh V Shem overcame Ingo Kindervater and Johannes Schoettler 21-16, 23-21 in the men's doubles to put the hosts in the lead and seemingly headed for an easy win.

Olga Konon hauled Germany back into the reckoning by beating Tee Jing Yi 21-12, 21-14 in the women's singles, before world No.32 Birgit Michels and Johanna Golsizewski outlasted No.15 Woon Khe Wei and Vivian Hoo 21-16, 16-21, 21-18 in the women's doubles to spark wild celebrations as team-mates piled onto the winning duo on court.

A similar 2-3 loss to eighth seeds Chinese Taipei on the opening day on Sunday meant the hosts will play no further part in the tournament they are hosting for the first time.

Chinese Taipei top Group C as they thrashed Germany 5-0 on Monday, and meet Group D runners-up Denmark in the quarter-finals on Thursday.

In other last-eight match-ups, eight-time champions China take on Indonesia, Germany face South Korea and Thailand play Japan.