Reigning Junior World Champions New Zealand Under 20 humiliated Wales U20 in Rovigo, where Richard Webster's side had no answer to the Baby Blacks.
The Kiwis were 45-0 ahead at the break and Wales were unable to reply as they conceded 14 tries.
Sam Cane, Lima Sopoaga and Charles Piuatau scored two tries apiece while Welsh-born Rhys Llewellyn also went over.
Gareth Anscombe kicked 11 conversions as Wales suffered.
Wales coach Webster made seven personnel and two positional changes from the side that beat Argentina 34-8 in their opening game.
He must now decide which players to field in their final Pool A game against hosts Italy in Treviso on Saturday.
Webster said: "The boys were understadably deflated immediately after the final whistle, we never really got started in the game, but New Zealand are a formidable side that will take a lot of teams apart.
"The positives are that we are still in the tournament, and with a bonus point win over Italy, we could still qualify for the top four.
"We have already started to put the game behind us and look forward to the next game."
Meanwhile New Zealand go into their next clash, also on Saturday, against Argentina in Padua having accounted for Italy with a 64-7 win.
Wales U20: Liam Williams (Llanelli); Iolo Evans (Scarlets / Llanelli) Owen Williams (Blues / Cardiff), Lewis Robling (Dragons / Newport), Dale Ford (Scarlets / Llanelli); Steve Shingler (London Irish), Lewis Jones (Blues / Pontypridd); Rhodri Jones (Scarlets / Llanelli), Kirby Myhill (Scarlets / Llanelli), WillGriff John (Blues/ Pontypridd), Lloyd Peers (capt, Ospreys/ Bridgend), Cory Hill (Blues / Pontypridd), Edward Siggery (Pontypridd), Thomas Young (Blues / Cardiff), Owen Sheppeard (Blues / Pontypridd).
Replacements: Jamie Sollis (Dragons / Cross Keys), WillTaylor (Ospreys / Swansea), Macauley Cook (Blues / Cardiff), Luke Hamilton (Blues / Glamorgan), Jonathan Evans (Dragons / Newport), Matthew Morgan (Ospreys / Swansea), Ross Jones (Ospreys / Bridgend).
New Zealand U20: Beauden Barret; Waisake Naholo, Rhys Llewellyn, Lima Sopoaga, Charles Piutau; Gareth Anscombe, TJ Perenara; Luke Whitelock (capt), Sam Cane, Brad Shields, Brodie Retallick, Steven Luatua, Ben Tameifuna, Codie Taylor, Solomona Sakalia.
Replacements: Sefo Setefano, Michael Kainga, Dominic Bird, Heiden Bedwell-Curtis, Brad Weber, Francis Saili, Glen Robertson.
Referee: Greg Garner (RFU).