Cody Rhodes’ reign as Undisputed WWE Champion came to an end last week on SmackDown, and the fallout may be shaping the next phase of “The American Nightmare’s” on-screen direction.
Rhodes dropped the title to Drew McIntyre after interference from “The Samoan Werewolf” Jacob Fatu, allowing “The Scottish Warrior” to finally capture the major gold in front of a live crowd (and keep it). The finish immediately sparked debate among fans, particularly regarding what it means for Rhodes moving forward.
Following the title loss, speculation began to circulate about a possible heel turn for Rhodes. One fan asked Cory Hays of BodySlam on social media whether WWE might be heading in that direction.
Hays made it clear that a full turn isn’t planned, though change is coming.
“Not a turn, but a character shift,” Hays wrote.
While specific details remain under wraps, the expectation is that Rhodes will emerge from the loss with a noticeably altered presentation and mindset, signaling a new chapter without abandoning his babyface role entirely.
Not everyone was sold on how WWE handled the title change.
Speaking on Busted Open Radio, Tommy Dreamer was openly critical of the finish and questioned both the crowd reaction and the long-term impact on Jacob Fatu.
“I did not like the finish at all, because what does that do for Jacob? He reveals himself that it’s Drew McIntyre who attacked him, and he gets a reaction. And the moment he turned on Cody, (the crowd) starts booing.”
Dreamer highlighted the confusing dynamic that played out once Fatu became directly involved.
“I’m like, so you don’t like Cody throughout the match. But now Jacob, who you like, once he starts beating up Cody, now you’re booing him and cheering for the guy he’s beating up?”
From Dreamer’s perspective, the angle left Fatu in an awkward spot coming out of what should have been a major moment.
“I thought the finish came off a little weird, and I just was like, where does this leave Jacob if this is his big return? If he’s going to be the guy to face Drew, he just screwed over Cody, so he’s not a likeable guy.”
Dreamer also pushed back strongly against the idea of Rhodes embracing a darker persona, warning that fans may not realize what they’re asking for.
“And if this is an era where we want to cheer bad, okay. But your worst scenario as a wrestling fan is a bad Cody Rhodes. I’m telling you, I know what he has to be a heel, and what you see as a top guy heel, you ain’t gonna like it.”
For now, Rhodes remains firmly positioned as a top babyface.
But with WWE signaling a ‘character shift,’ the post-title version of “The American Nightmare” could look very different from what fans have grown accustomed to.
Meanwhile, Drew McIntyre has been having a field day on social media since becoming Undisputed WWE Champion.
Tommy Dreamer on the ramifications following Drew McIntyre defeating Cody Rhodes on #Smackdown:
"I know what [Cody] has to be a heel… you ain't gonna like it." pic.twitter.com/Cp1IV1cQYW
— SiriusXM Busted Open (@BustedOpenRadio) January 10, 2026
