Granada beat Morgan McChrystal in the first round, 6 and 4, and then defeated Nannette Hill, 2 and 1, to advance to the Round of 16. Granada, of Paraguay, was one of three players that finished stroke play in a tie for first at 3 under par.
Second-seeded Mari Chun and third-seeded Bee Park, the other two who were tied with Granada after stroke play, were defeated on Wednesday.
Chun was defeated in the first round by Stephanie Sherlock, 2 and 1. It was the first time since 1987 that a medalist was beaten in the first round of match play. Sherlock, the 63rd seed, then lost to 31st-seeded Morgan Pressel in the second round, 5 and 4.
Pressel will next face Maria Jose Uribe, who defeated Megan Grehan in the second round, 1 up. She had defeated Songyi Yi, 5 and 3, in Round 1.
Park had beat Jennifer Cassidy, 3 and 2, but lost to 30th-seeded Hsiao-Ching Lu in 22 holes. Lu will face Marika Lendl in the quarters.
Granada will next play Sooji Cho, the 48 seed, for the right to go to the quarterfinal round. Cho beat Stepehane Kono, 1 up, and Laura Luethke, 1 up, on her way to the Round of 16.
Defending champion Sukjin-Lee Wuesthoff was also victorious in her two match- play rounds. The six seed beat Sofia Janer in Round 1, 5 and 4, then handled Lauren Espinosa, 3 and 1.
Wuesthoff will play 22 seed Mina Harigae in Round 3. Harigae beat Ya-Ni Tseng, 2 and 1, in the second round and Lauren Mielbrecht in the first, 3 and 2.
Other players who advanced to the Round of 16 on Wednesday were: Esther Choe, Jennie Lee, Paula Creamer, Grace Woo, Selanee Henderson, Jennifer Hong, Taylor Leon and Jane Park.