Wild Oats XI is out of the Sydney Hobart yacht race.
The eight time line honours champion and race leader has been forced to retire, after suffering hydraulic ram issues.
Wild Oats XI was on race record time when disaster struck.
Perpetual Loyal is now at the head of the fleet, with New Zealand entry Giacomo second and Maserati third.
They are around a dozen boats all on target to go under the current race record.
Cruising Yacht Club of Australia commodore John Markos is tipping the winner to shave two hours off Wild Oats XI's 2012 benchmark.