Well, you've stopped using your brain again; nothing changes, except that the guy who just lost can now win in a single-elimination bracket. Look it up when you have time. And with such statements and actions, you confirm the low quality of your Tournaments. Do you think this will attract more players in the future?
Complaints about the format sometimes arise, but much less often than positive feedback. And the number of participants is not decreasing.
In this Tournament, if it were held in a classic single-elimination bracket, you would have 2 free wins - in the 1/16 and 1/8 rounds. I understand that this would increase your chances of winning, but in my opinion, victory should be earned in the game, not through non-game moments.
I would call this a best-of-3 single-elimination bracket with auto-rebuy.