Not worried about a 1. Like last year, sometimes being a 2 is better than being the 1.
The biggest significance of this loss is that even if the Huskies lose tomorrow, they'll likely still be ahead of Louisville and should get priority for the #2 seed in Fort Wayne over the Cardinals. This means Louisville probably has to play a road game at Baylor, SC or Oregon to get to the Final Four instead of UCONN.
This week we saw a slew of potential #1s and #2s drop games that should help the Huskies in a huge way to stay on the 2 line:
Stanford losing at home to UCLA
Louisville losing to Florida State and Syracuse
Gonzaga losing at St Mary's
Oregon State losing at home to Arizona
Right now, IMO it looks like the seedings would be (in order):
1-SC, Baylor, Oregon, UCONN
2-Maryland, NC State, UCLA, Stanford
3-Mississippi State, Arizona, Louisville, Northwestern
UCONN dropping the game tomorrow likely pushes them down to #7 or #8 but keep in mind, lots of big games left to be played including:
Oregon schools playing against UCLA and Stanford
Maryland vs. Iowa
Mississippi State @ Kentucky and vs. Arkansas
UCONN @ South Carolina
Louisville @ NC State
Stanford @ both Arizona schools and vs both Oregon schools
SC @ Kentucky and vs. A&M
Plus all of the conference tournaments. The only team who appears to be in the clear is Baylor. Wouldn't be surprised if every other team drops a game before the end of the regular season.