The reason why Jay lost is simple. There are basically two ways Jay could have won: he could come super-shredded at 245 lbs like he was at the 2001 Olympia or blow them away with sheer size by coming around 275 lbs.
In my opinion, the first strategy would be very risky for Jay. Why? Because he would be only slightly bigger than guys like Dex that have much, much higher muscle quality and symmetry than he does. Jay is very shitty when trying to go for cuts and symmetry at the expense of size because other bodybuilders are simply much better at a lighter weight than he is. However, if he showed up like he looked at the 2001 Olympia, he might have won. If Jay had gone for size and came close to 280 lbs, his symmetry and muscle quality would be terrible, but his sheer muscular development would have assured him the win.
In conclusion, Jay lost because he went for neither strategies. Instead of coming shredded at 250 lbs or humongous at 280 lbs, he came in at a soft 262 lbs. That is, he had neither the muscle quality he had at the 2001 Olympia nor the sheer mass he had at the 2006 Olympia. By trying to come in big and shredded, he lost both properties and with it the Olympia crown. The end.
SUCKMYMUSCLE