Former world number one Peter Gade tipped Taufik Hidayat to go all the way to Olympic badminton gold after losing 15-12, 15-12 to the unseeded Indonesian in the men's singles quarter-finals on Wednesday.

The sixth seeded Dane had been the last European in the draw and his defeat left Asian players fighting it out for the medals.

"I think he can win the gold," said a disappointed Gade, who lost the bronze playoff match in Sydney four years ago when Asia also swept the podium.

In the morning's other quarter-final, South Korean seventh seed Shon Seung-Ho upset China's second seed Chen Hong 10-15 ,15-4, 15-10 in an 82 minute thriller.

Chen was China's last hope of retaining the title after the earlier exits of world number one Lin Dan and fourth seed Bao Chunlai.

Gade simply failed to assert himself in his hour-long encounter with an agile and energetic opponent who beat Malaysian third seed Wong Choong Hann in the last round.

"You have to control the net and he was controlling the net today," said the 27-year-old.

"I was not good enough at closing in on him at the net and he took some chances and it worked out for him."

Hidayat, cheered on by a small but rowdy group of flag-waving compatriots in a largely-deserted arena, grew in confidence midway through the first set.

"He is in a situation where he can come from behind and nobody is expecting him to do well," said Gade. "But he is always a good player. I respect him and like him a lot.

"I could have nailed at least one of the sets but he was the best today and took the right chances."