West Australian wildcard Jay Davies has caused another huge upset at the Margaret River Pro, beating three-time world champion Mick Fanning.

The 28-year-old from Yallingup yesterday knocked out the reigning world champion, Brazil's Gabriel Medina.

Fanning, who is currently ranked number one in the world, had led for most of the heat.

But Davies took an extremely critical drop on one of the largest waves of the day and bottom turned as it was already breaking over him into a long, deep tube to score a 9.50-point ride.

"That was so fun, every bit of it," Davies said from the water after his win.

"I just really had to forget about all the other heats ... and put my head down.

"It was the steepest take-off and I had to give it everything I had. I thought I was going to come off but I held on.

"It's exciting to do it in my own home town in front of all my friends and family."

Fanning said Davies was a world-class surfer and the waves were difficult.

"The Box is sort of a lucky dip, you either make them or you don't," he said.

Sorry, this video has expired Local wildcard Jay Davies defeats three time world surfing champion Mick Fanning ( Nicolas Perpitch )

Hawaiian surfers dominate early

Earlier, Gold Coast surfer and former world champion Joel Parkinson was also knocked out, as Hawaiian surfers dominated early on the third day of competition.

Parkinson had performed strongly in the big waves until today after performances in the first two events of the year.

But he could not match the high scoring rides of Hawaiian Sebastian Zietz in the powerful tubes at The Box.

Zietz said neither he nor Parkinson caught the best waves out there.

"There's one huge one that Joel didn't go on that would have taken a huge amount of skill to make. It was just perfect."

World Surf League commentator and big wave surfer Peter Mel said Parkinson told his caddy after his heat that he paddled for a wave that he did not then catch, which could have won him the heat.

"He knew what his mistake was," Mel said.

Fellow Hawaiian John John Florence made it look easy in the dangerous waves, easily beating Australia's Adam Melling.

Florence, arguably the world's best tube rider, looked like he was playing with the waves, seemingly weaving effortlessly through the barrels.

He beat Australia's Adam Melling, who had probably the worst wipeout of the competition so far when he took the drop on a wave and fell as the lip hit him squarely on the head, driving him straight down towards the reef.

Fortunately, he was unhurt and paddled back out to finish his heat.

Last year's event winner, Tahiti's Michel Bourez put on another powerful display and beat Australia's Kai Otton, despite Otton scoring an almost perfect 9.57 points.

"It's all about picking the right waves. If it's at The Box it's actually super gnarly out there.

"I was terrified. You don't really know what the wave's going to do, so you just go and wait for it to happen, and pray to make the barrel."