Wales Under-21s’ seven-match unbeaten run was ended by Bosnia-Herzegovina who came from behind to secure their first Euro 2011 qualifying win in Sarajevo yesterday.
Wales, playing a 4-3-3 system with Simon Church, Sam Vokes and Ched Evans up front, were quickly into the attack, pinning the Bosnians back.
They got the perfect start with a fifth-minute goal from Swansea midfielder Joe Allen, who fired home from 10 yards after Matthews' throw-in was flicked on into his path.
The Bosnian response was a sustained period of pressure.
The home side were level after 29 minutes when a shot from Haurdic flew past Wrexham goalkeeper Chris Maxwell.
The home pressure continued until the break, and Wales survived without any further mishaps.
Wales sent on Swansea's Ashley Richards at the break for the injured Matthews, and then introduced Shaun MacDonald for Vokes soon after the interval.
It meant that the Swansea winger, currently on loan at Yeovil, set a new caps record for the Wales under-21s with his 22nd appearance at this level, overtaking James Thomas, the former Swansea striker now playing in Australia.
Wales, though, were still under pressure and conceded a penalty when Darcy Blake was booked after 62 minutes for a foul on Haurdic.
But Wales received a major let-off when Nenad Kiso missed from the spot. But their joy was short-lived when the outstanding Haurdic fired home his second of the match after 66 minutes to put Bosnia ahead.
It was now Wales' turn to try to mount a recovery, with Church, three times, Mark Bradley, Evans and Richards all going close as they searched for an equaliser, but to no avail.
It was the first defeat of the campaign for Brian Flynn’s side who are still top of Group Three with 13 points, while Hungary are second-place, four points behind with two games in hand.
Wales had won four of their five group games with the only previous points being dropped in the 0-0 draw in Luxembourg, but Flynn admitted he is taking nothing for granted in terms of qualification.
He said: "All I am prepared to say is that everything is going to plan, we have won our four home games and that has put us top of the group.
"But we have not achieved anything yet.
"But what is important to remember is that the group winners and the four best second placed countries go into the play-offs, so we are not certain of anything even if we do get the win.
"We must keep going, and make sure our record stands up to scrutiny, and make sure we are in the hat for the play-offs.”
Wales now go into their 10-month break with a defeat and finish their qualifying campaign with important trips to Hungary and Italy next September.
The 10 group winners and four best runners-up will qualify for the play-off stage, with the seven winners joining hosts Denmark in the finals in June 2011.
Meanwhile, Arsenal boss Arsene Wenger has been left sweating over yet another injury concern after Kieran Gibbs was substituted during the first half of the England Under-21 team's European Championship qualifier in Lithuania.
Gibbs is the 11th member of Arsenal's first-team squad to join the injured list and was replaced after 21 minutes of the 0-0 draw in Vilnius.
Stuart Pearce’s second-placed England remain unbeaten aso far in their qualification group and now face leaders Greece at Wembley next March.