Nooooo!

Disaster struck the Kiwi syndicate when it shredded a spinnaker on the first down wind run effectively handing the race to Swiss holder Alinghi.

It was a cruel blow especially after gear failure undermined Team New Zealand's cup defence in Auckland four years ago.

So determined were they to banish those memories, reliability has been a constant catch-cry of this campaign.

But a tiny hole appeared in its spinnaker on the first run.

And before it could be replaced it shredded in spectacular fashion creating chaos among the Kiwi crew.

The top half of the sail flapped uncontrollably in the breeze when a halyard jammed at the top of the mast.

The bottom half effectively became a sea-anchor before it was cut free.

A second hoist failed and then a third eventually brought them back up to speed. But by this stage Alinghi had turned a 50 metre deficit into a 150m lead. Game, set, match.

Team New Zealand skipper Dean Barker ominously warned before the race that one mistake could cost them the cup and this morning's could be it.

Alinghi now have a 3-2 lead in the best-of-nine series and more importantly the momentum with two races to go before the next layday.

Until disaster struck, it was looking promising for the New Zealanders, which only rubbed salt into their wounds.

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