Zverev held on to beat the Swiss 6-3 6-7(7) 6-3 at the quarter-final stage at the Qizhong Forest Sports City Arena in what was a testy affair.
Federer repeatedly lost his cool with the umpire and general situation, something it is extremely rare to see.
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The 38-year-old was deducted a point when 3-0 down in the deciding set against the German in a tense stand-off with the umpire.
There was a gasp when the umpire announced: "Code violation. Unsportsmanlike conduct, point penalty, Mr Federer."
All very strange, and now the Swiss legend is out.
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