The UFC was the brainchild of Rorion Gracie and Art Davie, with Bob Meyrowitz agreeing to put it on pay-per-view.
Davie envisioned a martial arts tournament in which all of the world's martial arts could come together and compete to see which was better.
Gracie envisioned not a true martial arts tournament but rather an infomercial for Gracie Jiu-Jitsu.
An infomercial for Gracie Jiu-Jitsu was exactly what it was. Royce Gracie represented his clan and effortlessly dispatched all of his opponents, including shootfighting legend Ken Shamrock.
Another dominant performance at the second UFC event proved that Royce Gracie and his style were no fluke.
Because of this, Gracie was an enormous favorite heading into UFC 3. Unfortunately for him and the Gracies, there was a monster of a man named Kimo Leopoldo—although he was billed simply as "Kimo" at the time—in the tournament.
Despite losing, Kimo pushed Gracie further than he ever had been pushed before. Gracie was so battered and exhausted by Kimo's onslaught that he couldn't continue. For the first time in UFC history, a tournament was not won by a Gracie.
While this doesn't seem "crazy" per se, there are many different levels of crazy. This was crazy in the sense that it was highly unexpected; it was crazy to see the once invincible Royce Gracie humbled!