Newman, a senior, double bogeyed the first hole and never got on track in his 7 and 6 loss to Max Homa.
Reed, a junior, lost in 19 holes to NCAA Division I medalist Scott Langley.
Every hole from the 11th onward was won outright and some in dramatic fashion, including Reed's chip in from a greenside bunker to win the 16th and pull even. Langley won No. 17 and Reed forced extra holes winning the 18th before Reed's tee shot on the first extra hole found the long fescue on a large dune along the first fairway.
In the afternoon, Langley rolled past Kyle McCarthy, winning 6 and 4.
"I'm happy with the way I've been competitive," Langley said. "The first two matches I was down early and didn't give up and kept fighting. I'm happy with the way I performed down the stretch in those matches."
Langley will face David Chung today. Chung rallied to beat Brad Benjamin 2 and 1.
Defending champion Byeong-Hun An has yet to play either the 17th or 18th holes. An's day started with a 4 and 3 victory over Alex Shi Yup Kim in the morning. After a brief break and with the winds picking up, An beat Scott Strohmeyer 3 and 2.
An now gets someone he'll soon become quite familiar with: his California teammate Homa. An is an incoming freshman at Cal, while Homa bounced in and out of the Golden Bears lineup last year as a freshman.
Homa reached the quarterfinals with a 4 and 3 win over Harris English.
The bottom half of the bracket features a matchup of Oklahoma State teammates with Morgan Hoffmann and Peter Uihlein meeting. Patrick Cantlay will face Jed Dirksen in the other match