This situation was clearly anticipated by the Jade Void Palace and other Super Sects. Even though their opponents were also Super Sects, they had no choice but to accept it.
However, the fact that Chang'an Mountain Gate defeated the Ling Family—one of the Thirteen Families—was something that no one had expected.
No matter what, the Ling Family was still one of the Thirteen Families, with a strong foundation. While the competition was among mid-level cultivators, Ling Yun had joined the Phoenix Sect, and Su Han had helped him unseal both the Heaven-Swallowing Demon Body and the Daytime Celestial Body. With the combined support of these two special physiques, they should have logically been able to defeat Chang'an Mountain Gate.
"Chang'an Mountain Gate actually defeated the Ling Family?"