While Jayaram, seeded third, retired from his quarterfinal tie to hand over qualifier Xue Song of China a place in the last four stage of the tournament, Bhat went down tamely to second seed Jen Hao Hsu of Chinese Taipei.
Having lost the opening game 12-21, Jayaram was down 10-15 in the second game when he decided to quit.
The 25-year-old Indian battled for 27 minutes before finally giving up.
Earlier in the day, Jayaram had played a hard-fought third round match to prevail over 12th seeded Ji Hoon Hong of South Korea 14-21 28-26 21-13.
Seeded 13th, Bhat, however failed to pose any threat to Jen Hao Hsu, losing his round of 16 match 6-21 17-21 in 39 minutes.
But he had done well in his third round match earlier today, getting the better of sixth seed Indonesian Andre Kurniawan Tedjono 21-19 21-10 in 41 minutes.