Raducanu had beaten US star Sloane Stephen in her first game in the tournament.
Raducanu’s Australian Open debut ended in 6-4 4-6 6-3 defeat as she struggled with blisters on her hands.
British number 1 Raducanu revealed that she has been nursing the blister for about five days.
“It has been a challenge, for sure,” she told BBC Sport.
“The past few days I have been really hindered in my practice and couldn’t hit any forehands or serves at all.
“Some people in my team didn’t really want me to go out there. I wanted to go and fight and see how far that would take me.”
In other games, third seed Garbine Muguruza lost to French veteran Alize Cornet 6-3 6-3 and sixth seed Anett Kontaveit beaten 6-2 6-4 by Danish teenager Clara Tauson.
Simona Halep put in a clinical performance to see off Beatriz Haddad Maia 6-2 6-0, while, second seed Aryna Sabalenka surrendered the opening set before outclassing China’s Wang Xinyu 1-6 6-4 6-2.
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