The Wolverines lost 63-52, producing a season-worst point total and ending their best start to conference play since 1976-77. They had been the league's last unbeaten.
Michigan (16-5, 8-1 Big Ten) received 13 points from Derrick Walton Jr. and 12 from Caris LeVert. While the Wolverines' guards produced, their dynamic frontcourt duo of Nik Stauskas and Glenn Robinson III was held in check.
Stauskas had six points, only the third time this season he has failed to score in double figures, while Robinson scored a quiet nine points.
Indiana (14-8, 4-5) had lost three of four but rode that tight, creative defense and Ferrell's hot shooting to a win that might shift its season.
Virginia 48, No. 18 Pitt 45 • Malcolm Brogdon made a last-second 3-pointer to give the Cavaliers (17-5, 8-1 ACC) a victory at Pittsburgh (18-4, 6-3).
Oregon State 71, UCLA 67 • Freshman Hallice Cooke scored 14 of his season-high 20 points in the second half and scored the go-ahead basket with 6:12 to play as the Beavers (13-8, 5-4 Pac-12) won at home.
Top 25 scores
• Indiana 63, No. 10 Michigan 52
• No. 13 Cincinnati 50, South Florida 45
• Virginia 48, No. 18 Pitt 45