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North Carolina jumped to a big lead, then in overtime held off the reigning champion Bears, who became the first No. 1 seed to be bounced from this tournament.
The second-seeded Huskies got a balanced effort and 12 points in 25 minutes from the star guard Paige Bueckers.
At halftime of their first-round game, the top-seeded Gamecocks led 44-4.
Michigan also beat Colorado State, a higher-seeded team, but oddsmakers had favored the Wolverines. Providence held off South Dakota State and Memphis notched a big win.