At WWE Saturday Night’s Main Event on July 18, 2026, Lyra Valkyria stunned fans by submitting Bayley in a high-stakes match at Madison Square Garden. Valkyria, formerly aligned with Bayley during her NXT Women’s Champion tenure, had turned heel on June 22nd’s Monday Night Raw, breaking their longtime partnership. This heel turn led to an intense showdown where Valkyria secured a signature submission victory as Bayley passed out rather than tapping, marking a major milestone in Valkyria’s burgeoning main roster career.

The match was a brutal exchange filled with dramatic moments, including Valkyria sustaining a possible broken nose yet continuing her assault, and Bayley mounting several comebacks with signature moves such as a back body drop and the Boston crab submission. Despite Bayley’s aggressive offense, Valkyria countered effectively, applying a unique modified sleeper hold that sealed the win. The post-match assault by Valkyria on Bayley, involving a steel steps attack, further intensified their bitter rivalry.

Bayley’s future with WWE remains uncertain amid ongoing speculation about her contract, which reportedly expires next year. Known for winning the Royal Rumble and a world title at WrestleMania just two years ago, Bayley has since lingered in midcard storylines, unable to regain top-tier momentum. The storyline with Valkyria, originally expected to feature Bayley turning heel, instead saw Valkyria’s heel turn, a creative decision viewed by analysts as a missed opportunity that has left Bayley creatively stagnant.

With WWE recently releasing established stars like Sheamus and The New Day, Bayley’s place in the company as a midcard competitor suggests a challenging road ahead. Her loss to Valkyria at this event will probably prolong their feud in the short term, but long-term prospects look bleak unless WWE’s creative direction shifts. Fans and insiders alike await signs of Bayley’s next move, as rumors swirl about her potential departure for rival promotions such as AEW.