England slipped 2-0 behind in the one-day international series as Australia won at Lord's in a game overshadowed by an obstructing the field dismissal.
Midway into England's reply, Ben Stokes was given out for 10 after the ball hit his hand as he took evasive action.
Steve Smith struck 70 and Mitchell Marsh 64 from 31 balls as Australia made 309-7 from their 49 overs.
Skipper Eoin Morgan fired four sixes in a defiant 85 but England were all out for 245 to lose by 64 runs.
It was only the sixth dismissal for obstructing the field in the 3,861-match history of one-day internationals and the first for an England player.
The third of the five matches takes place at Old Trafford on Tuesday.
The controversy
In the 26th over, with England on 141-3, Stokes pushed a defensive shot back at bowler Mitchell Starc, who hurled the ball back as he saw the batsman leave his crease and sensed the chance of a run-out.
Out obstructing the field in ODIs
Batsman Match Venue/date
Rameez Raja
Pakistan v England
Karachi, 1987
Mohinder Amarnath
India v Sri Lanka
Ahmedabad, 1989
Inzamam-ul-Haq
Pakistan v India
Peshawar, 2006
Mohammad Hafeez
Pakistan v South Africa
Durban, 2013
Anwar Ali
Pakistan v South Africa
Port Elizabeth, 2013
Ben Stokes
England v Australia
Lord's, 2015
Stokes turned away as the throw arrowed towards both him and the stumps and dived back in an attempt to regain his ground, but the ball hit his outstretched hand.
On-field umpires Kumar Dharmasena and Tim Robinson consulted third umpire Joel Wilson who applied Law 37, deeming that Stokes had "wilfully" obstructed the field.
Reaction
Australia captain Steven Smith: "It was blatantly out. The ball wasn't going to hit him, Stokes was out of his crease, he put his arm out and got in the way of the ball.
"I thought it was the right decision at the time and I still think it's the right decision."
England skipper Eoin Morgan: "I think it would have been very different if we were fielding."
Asked if that meant he would have withdrawn the appeal, Morgan replied: "Yep."
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12:04 PM
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