Villamayor, who turned 35, adopted GM Eugene Torre’s pet Trompovsky with satisfactory results, moving half a point behind the leaders along with GM Rogelio Antonio and NM John Paul Gomez with 7.5 points.
Paragua’s loss dropped him into a three-way tie for the lead with Torre and surging NM Petronio Roca with eight points apiece going into the last three rounds.
Torre, 50, employed the Trompovsky in disposing of NM Oliver Barbosa in 45 moves while Roca downed NM Elmer Sumngat in 63 moves of a King’s Indian Defense.
Antonio, 38, won over the 15-year-old Gomez in 63 moves of the Sicilian Dragon.