Queensland went into the match in first place, but the 87-run loss to the Breakers, coupled with a surprise win by WA over the Ellyse Perry powered Victoria, meant the Fire slipped back into second spot.
Queensland will be thankful for their double-bonus point win over the ACT earlier this week and will now need to bounce back when their WNCL campaign continues in a week.
The Fire performed solidly with the ball, keeping NSW to 7-241 at the high-scoring Hurstville Oval venue with Australian spinner Jess Jonassen impressive in claiming 3-47.
Queensland was on track to chase down the total after promising starts from Beth Mooney (34) and captain Kirby Short (24) but saw everything go pear-shaped aside from Laura Harris hitting a defiant 65 from 53 balls as they lost 8-81.
Queensland's next game is against the ACT in Canberra on 21 January.