Australian Open wildcards Maddison Inglis and Chris O'Connell bow out in Melbourne

Maddison Inglis's breakout Australian Open campaign is over while fellow local wildcard Chris O'Connell also fell in a tough third-round battle.

Inglis lost her way against six-time Grand Slam quarter-finalist Kaia Kanepi, succumbing 2-6, 6-2, 6-0 to the Estonian veteran in sweltering heat on Saturday at Rod Laver Arena.

Later in the afternoon a hobbled O'Connell, fresh off claiming his first top-20 scalp, couldn't find a way through Maxime Cressy, losing 6-2, 6-7(6), 6-3, 6-2.

Despite her departure, Inglis will pocket a career-saving cheque for A$221,000 -- plus another A$30,050 for the doubles -- after reaching the last 32 at a Grand Slam for the first time.

The 24-year-old had never won a match at a major before this week at Melbourne Park.

Inglis will also profit from a rankings boost from 133rd in the world to around No. 115, leaving the Perth product closer to direct entry to future grand slams.

Inglis admitted that "it got away from her a bit" but that her experience on Rod Laver Arena had emboldened her.

"I've taken a bit of belief out of it that I can play at this level and I belong here I think," she said.

"I've just got to be able to maintain it longer against those really good players for three or four or five matches in a row.

"Playing on Rod Laver today, it was a dream come true."

US serve-volleyer Cressy wasn't broken by O'Connell, who had shocked world No. 13 Diego Schwartzman to reach the third round in a grand slam for the first time.

O'Connell saved two set points in the second set tie-break to level proceedings in front of some boisterous local support.

But, appearing to be troubled by a leg injury, he watched 28 aces and 71 winners in total sail by as the American assumed control.

Cressy committed just 21 unforced errors to make his first fourth round of a major, where he'll face tournament favourite Daniil Medvedev.

Like Inglis, O'Connell is set to move up 30 spots to No. 145 in the world and is still alive in the men's doubles, but could be forced to retire after admitting he was "pretty sore".

He had planned to fly to India for a lower-level tournament and with a rankings boost is now hopeful of qualifying for ATP Masters 1000 events at Indian Wells and the Miami Open.

"I have never played in front of a crowd like that ... it was awesome, "O'Connell said.

"The highlight of my career so far ... but up against a completely different player to what I was up against in the first two rounds.

"I just had no rhythm out there. He served unbelievable ... just too good."