Reyes, who won in Cardiff in 1999 and came into the race-to-8, knockout-format event oozing with confidence with a victory in the just-concluded On Cue: The Continental Challenge, fell to Niels Fiejen, 7-8.
On the other hand, Pagulayan, winner of the world 9-ball in Taiwan and whom Reyes beat in the final of the Manila event, failed to flaunt his form and absorbed a stinging 5-8 loss to Nick Van Den Berg.
Also getting the boot in the upset-marred opener were American Johnny Archer, who fell to Luc Salvas, 6-8; Swede ace Mika Immonen, who lost to Marcus Chamat, 6-8; and another Filipino bet, Marlon Manalo, who was routed by former world 9-ball champion Thorsten Hohmman.
Even defending champion Tony Drago fell by the wayside in the tournament featuring 16 of the worlds top players, losing to Thomas Engert, 7-8.
Feijen, Europes No. 2, overcame the odds as he came from behind to beat the fancied Reyes, while Van den Berg, a Mosconi Cup hopeful, swept in to a 3-0 and never gave Pagulayan room for a comeback.