In this case, it would be preferable for the tournament director to change the bracket into a best of three series; however, there are no rules that require it for invitational tournaments, so it is entirely at the tournament director's discretion.
The rules are a little different for state qualifying tournaments, which must rebracket in two instances: (1) into a round-robin if the number of wrestlers in a bracket drop below five, or (2) into a best two-of-three bracket if the number drops to only two competitors.