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Carvalho spent most of the fight trying to withstand pressure from Loughnane and was dropped by a short right hand.
Loughnane moved forward to finish the fight but struggled to land cleanly on a squirming Carvalho.
The Portuguese dived for Loughnane’s leg but referee Kevin MacDonald decided to stop the contest.
Carvalho, 28, slumped to his third defeat in a row.
While there was good news for Loughnane, it was a difficult night for Welshman Brett Johns.
The 32-year-old featherweight was beaten via unanimous decision by Russian Timur Khizriev, picking up the fourth loss of his 24-fight MMA career.
Khizriev, 28, remains unbeaten with 15 victories in a row, while Johns will need to pick himself up quickly for his next fight in the summer.
“Not the result we wanted for Brett Johns, but the man fought his heart out against an unbeaten talent and left it all on there,” John’s coach Richard Shore said afterwards.
“We are proud of him and 28 June we will go again.”
PFL’s season format means each fighter competes twice for points in two fights before moving on to the knockout stages and the finals at the end of the year.
The winner of each tournament wins $1m with the PFL world title.
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