The ATP Tour said it had launched an investigation and Kyrgios, similarly hit with a point penalty in losing the China Open final to Rafael Nadal on Sunday, said he was "gutted" to retire against Johnson.
Nick Kyrgios courted controversy once again at the Shanghai Masters on Tuesday, retiring midway through his match with Steve Johnson for seemingly no reason. After Johnson served an ace to win the breaker 7-5, Kyrgios walked over to shake hands.
The Aussie was forced to undergo psychological counselling at the end of past year as part of a deal to reduce his ban and it remains to be seen what action is taking against the volatile player.
'I've been battling a stomach bug for the past 24 hours and I tried to be ready but I was really struggling on the court today which I think was pretty evident from the first point.
Kyrgios lost the next point and then started to complain and curse, which earned him an audible obscenity code violation.
World number 19 Kyrgios matched Nadal early on, winning his opening two service games but became involved in a debate with umpire Mohamed Lahyani over a close line call against him.
The talent is there but only Kyrgios himself can set it free it for everyone to enjoy.
Kyrgios served a ban from the ATP Tour past year after showing a lack of effort in a second-round match against Mischa Zverev and arguing with the umpire and fans.
"Once I lost the first set I was just not strong enough to continue", he wrote.
"I can't play at 100 percent if that stuff happens - and then you expect me not to be angry", Kyrgios told Lahyani. Kyrgios gave little effort during the 3-6, 1-6 loss, even patting easy serves over the net and turning away before his opponent's serve crossed the net. His shoulder had also started to hurt that day while practicing.
"He played well. I played bad".
Juan Martin del Potro also made the third round, with the Argentine 16th seed seeing off the challenge of young Russian Andrey Rublev 6-3, 6-4.