Naomi, 23, dropped from 7 to 12th position, ending her streak of 140 consecutive weeks in the Top 10, a streak that started on September 17, 2018.
Osaka conceded a defeat against Canadian teenager Leylah Fernandez, who came up with an inspired performance on Friday evening to win 5-7, 7-6(2), 6-4.
Osaka's title defense at the U.S. Open was over in the third round with a 5-7, 6-7 (2), 6-4 loss Friday night to Leylah Fernandez, an 18-year-old from Canada
Sloane Stephens entered the third round with a 6-4, 6-2 victory over 21st seed Coco Gauff.
Osaka had been scheduled to face Olga Danilovic of Serbia in the first match of the day at Arthur Ashe Stadium.
The year's last Grand Slam tournament begins Monday — with full crowds allowed a year after all fans were banned because of the coronavirus outbreak
Medvedev, the 2019 champion and last year’s runner-up to Novak Djokovic, advanced to the quarterfinals with a 6-3, 6-3 victory over Grigor Dimitrov.
Down a set and a break to 17-year-old Coco Gauff, the second-ranked Osaka fought back to pull out a 4-6, 6-3, 6-4.
Naomi Osaka struggled to hold back tears in her first press conference since pulling out from the French Open over mental health concerns.
The disappointment came just four days after Osaka left the nation teary-eyed by running up a Mount Fuji-like set at the National Stadium and lighting the Olympic cauldron with her torch to open the Olympics.
The second-ranked Osaka, who was born in Japan and grew up in the United States, struggled with her usually reliable groundstrokes.
The host country’s superstar stepped up her game when she needed to in a 6-3, 6-2 win over 49th-ranked Viktorija Golubic.
Osaka hadn't played since she withdrew from the French Open in May to take a mental health break, revealing that she has dealt with depression. She then sat out Wimbledon.
The four-time Grand Slam winner lit the cauldron at the opening ceremony of the Tokyo Olympics on Friday.
The cauldron sat atop a peak inspired by Mount Fuji. It’s a sphere that opened like a flower, “to embody vitality and hope,” organizers said.
The other men's tennis stars to be seen in Tokyo include two-time Olympic gold medallist Andy Murray of Great Britain, Germany's Alexander Zverev and Argentina's Diego Schwartzman.
In interviews during last two majors current and former players said they think their sport might be particularly prone to issues such as stress, anxiety and depression.
Osaka will return to competition at the Tokyo Olympics, which open July 23, and where she will represent her native Japan.
She's the highest-earning female athlete in the world, a tennis superstar and represents Japan, making her a strong medal contender for the host country.
Federer said last weekend he would wait until after Wimbledon ends on July 11 to decide whether he will head to Japan.
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