The combustible but talented 22-year-old, who had another meltdown in losing the China Open final to Rafael Nadal on Sunday, has long struggled with his demons, repeatedly losing focus mid-match and arguing with umpires and fans.
World number 19 Kyrgios, who was looking for his first title of the year, held his opening two service games, but faded as Nadal broke twice to grab the first set.
The mercurial Kyrgios is known as much for his volatile temper as his prodigious talent and showcased the best and worst of his game at last week's China Open in Beijing.
Nick Kyrgios lost control of his emotions during the China Open final against Rafael Nadal, in which he received a point penalty following a series of verbal disagreements with the umpire.
But with the crowd behind him and Dimitrov visibly tiring, the 16-time Grand Slam champion Nadal stepped up a gear to ram home his superiority.
"It's nice to see him keeping going", Federer said in the run-up to the Shanghai Masters first round, per the Express.
Kyrgios went on to outline his vision - and says it is that which is inspiring him on the tennis tour.
"Then, of course, he has great hands and a fantastic serve.
He just destroyed me today, so it was too good", said Kyrgios after the event not mentioning his behavior.
"He has everything to fight for nearly all the events of the year".
"I hope to be back next year, xie xie ('thank you' in Mandarin)", he added after thanking organisers, fans, and his team. At 40-0 in the final game, Halep won with a clean forehand victor down the line.
Writing for the playersvoice.com.au website, Kyrgios also called the final "a disappointing end to an otherwise good week". "I've been asking myself that question for the last couple of years", Kyrgios told The Players Voice.
He has chosen Melbourne because of its standing as "the sporting capital of Australia", saying "it's a big population and it has a bit more going on than where I'm from".