The Houston Rockets guard was entering the competition as one of the favourites to win back-to-back titles.
As the defending champion he went last with just three going through to the final round.
But Gordon was unable to beat the scores of Tobias Harris, Devin Booker and Klay Thompson with just 12 points.
And NBA legend O’Neal couldn’t help thinking there was one reason Gordon was unable to match his usual best.
“I know snitches get stitches but I can tell who went out last night,” O’Neal said.
“I’m just saying America. 12 points? Are you kidding me?
“I’m not saying I can do it.”
O’Neal added: “I hit one out of 122, that makes me an expert.”
Harris went first in the championship round but, after a strong start, scored just 17 leaving the door open to Booker and Thompson.
The Phoenix Suns guard went next and he stole the show, scoring 28 points meaning the Warriors star had it all to do.
Thompson has the best three-point percentage in the league this year so was more than capable of matching Booker’s score but it proved too much for him on the night.