Gangjee, who was well on his way to making the cut at one-under for the tournament with four holes to go, collapsed at the end.
Gangjee shot two-under 69 with three birdies and one bogey in the first round. He was one-over after 14 holes, but bogeys on 15th, 17th and 18th ended his chances as he fell short of the cut by three.
Erik Flores six-under 66 at Fox Den Country Club and went into lead at 11-under par 131. Matthias Gronberg, Hudson Swafford and Darron Stiles shared the second place at nine-under 133 after 36 holes.
Seven more players are at eight-under 134. First round leader Casey Wittenberg struggled on day two shooting a one-over 72 and falling in to a tie for seventh.