Not entirely true. I went back to back loses with opponents higher level than me. Look at it more this way there are 3 brackets no wins, loser, and winner. Start out by fighting either someone starting out like you or a random. Win that game then you go to the winner bracket. You will then be placed against someone around your level who won their last game. Lose that game now you are placed with someone who lost their previous game. After 60 seconds though it's fair game. Not sure if this is how the system works, but this is how I have always perceived it to be.