before losing also to Tayor Fritz in the final at Indian Wells, California.
Nadal rebounded to win his fourth title of the year at Roland Garros in June.
Then at Wimbledon, Nadal defeated Fritz in the quarterfinals in a fifth set tiebreaker before withdrawing from the following semifinal match with injury.
Seeded second in Torino, Nadal serving at five games all 40-0 in the opening set struck an ace out wide to lead 6-5.
Fritz held serve to reach a tiebreaker after striking a powerful crosscourt forehand winner and a down the tee ace.
In the tiebreaker, Fritz's deep groundstrokes led to Nadal striking three forehand errors as well as two backhand errors following an opening point doublefault from the Spaniard.
Meanwhile Fritz continued to play his power game by striking a 136 miles per hour down the tee serve.
Up set point at 6-3 in the tiebreaker, Fritz struck an inside out down the line forehand winner.
In set two, the American took a 2-1 lead before breaking Nadal's serve to lead 3-1 after the Spaniard struck a down the line forehand long.
Fritz held serve to lead 4-1.
Nadal struggled again on serve with his following service game going to multiple deuces.
Fritz struck a swing forehand volley winner before Nadal netted a down the line forehand on the following point to reach breakpoint.
A final doublefault from Nadal put Fritz up a double break of serve at 5-1.
With Fritz serving for the match, Nadal hit three groundstroke errors to face matchpoint.
In his 28th unforced error of the day, Nadal struck an inside out down the line forehand long to end the match.
The 25 year old 6 feet five inches tall Fritz, who displayed a powerful backhand and an even more powerful forehand, hit only 15 unforced errors for the day while never facing a breakpoint.
Fritz's quarterfinal Wimbledon showing is his best career grand slam result.
Fritz took singles titles earlier this year at Indian Wells, Eastbourne and Tokyo.