A quarter-final spot is now on the line for Leon Smith's side in Group E as they embark on the crucial doubles clash after Evans was unable to overcome the big-hitting Kazakh.
Evans battled tirelessly to eventually take the opening set 7-5, but saw his momentum slip away as Bublik powered back to take the second in impressive fashion.
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The 29-year-old from Birmingham could not respond in the deciding set and quickly tumbled to a 4-0 deficit before losing with just a game on the board.
It was a huge win for Bublik and for Kazakhstan and now Britain must win the doubles rubber in order to progress to the last eight in Madrid.
Earlier, Kyle Edmund was utterly dominant as he beat Mikhail Kukushkin to give Britain the early lead in the tie. Now, it is all down to the doubles.
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