You expected whoever lost on Court 1 to fall to the bottom.
Cause: That is not how this format works here. A top-court loser drops to Court 2 — exactly one court, the same as a loss anywhere else.
Fix: Nothing to fix. Some versions of this game played elsewhere send the top loser to the bottom; this one does not. If you need that behavior, you would have to move the player by hand in the group editor each week.