The world No.36 was given a code violation for 'unsportsmanlike conduct' after being broken early in the third set. He'd already received a similar violation earlier in the match, prompting the the umpire to issue a game penalty that sent the Australian over the edge.
Kyrgios, who has a history of bad behaviour on the court, threw his racket into the ground, kicked a water bottle in anger and then hurled the table across the clay court as the crowd gasped in shock.
After the outburst, Kyrgios shook hands with Ruud and the umpire before leaving the court, defaulting himself from the match and remainder of the competition.
Ruud was leading 6-3 6-7(5) 2-1 at the time, and will face Juan Martin del Potro in the third round.
In a statement, the ATP said Kyrgios will lose his $33,635 in prize money from the tournament as well as 45 ATP points, adding there will likely be further punishment pending an investigation of this incident.