The Buccaneers came into the encounter holding a commanding six-point lead over Masandawana at the top of the Betway Premiership table, but that cushion was halved following a ruthless first-half display from the defending champions, who netted twice through Brayan Leon.
Pirates started brightly and dominated the early exchanges, carving out several clear-cut chances. However, a combination of excellent goalkeeping by Ronwen Williams and a lack of composure in the final third saw the hosts fail to capitalise on their momentum.
"I think we had two halves," Ouaddou told reporters after the match.
"In the first, we wanted to be compact and play on the transition, and it worked because we recovered many balls and created the most effective chances. Unfortunately, we weren't efficient.
"Sundowns had fewer chances but they were more efficient than us. It's difficult to go into halftime 2-0 down, but I think the boys responded well in the second half."
After the break, Pirates emerged with renewed urgency and were quickly rewarded when Patrick Maswanganyi pulled one back, injecting belief into the contest. The league leaders pressed high and controlled large spells of the second stanza but were unable to find the equaliser despite sustained pressure.
Ouaddou, however, remains optimistic, insisting the title race is far from over.
"We pushed for the second goal but couldn't get it," he said.
"Sundowns won the first half, we won the second, but football is about goals. Nothing is lost — there are still games to play, and we must fight until the end."