Lynn's fine sequence of seven successive league wins ended in yesterday's Bank Holiday clash.
Their relentless charge towards the Premier Division leading pack ground to a halt at the hands of high-flyers Bedford.
A goal midway through the second half from leading Eagles scorer Chris Dillon settled the match, despite a battling and sometimes frantic display from Tommy Taylor's side.
The defeat also meant Linnets striker Danny Bloomfield's run of scoring in successive games ended at ten.
The Linnets kept faith with the same side that started the New Year's Day win at Stamford, with defender Adam Jones again ruled out with a dead leg.
Before the game Bloomfield and Dillon (15 goals) were the league's joint leading marksmen, while in Bedford's line-up former Boston United frontman Paul Fewings was on the bench.
A large crowd greeted both sets of players as they took the field.
The first chance of the match came off the head of the visitors' Jack Defty in the seventh minute when he nodded Mark Angel's corner over the bar.
Lynn's defence were all at sea at times, and in the 14th minute Rene Howe sliced them open before flashing a shot across the face of Steve Wilson's goal.
Four minutes later, Wilson was called upon to make a comfortable save from Dillon.
Bedford continued to surge forward at every opportunity and Wilson took two attempts to gratefully smother a Howe drive in the 20th minute.
Injury robbed Lynn of George Georgiou midway through the first half and the burly striker was replaced by the more diminutive figure of Michael Deane, who was signed last week from Ryman League Premier side Leyton.
Dillon turned Lynn's defence inside out in the 34th minute but screwed his effort wide of the target.
The third-place Eagles, unbeaten in the league at the New Eyrie since August, continued to carve The Walks outfit open almost at will, and eight minutes before the interval Richard Challinor blazed wide when having both time and space on his side.
Dillon was again the villain in front of the away goal when he headed Challinor's centre wide in the 43rd minute.
After soaking up much of the first half action, Lynn thought they had taken the lead on the stroke of half-time when Defty's header from an Angel free-kick was ruled out for a push in the box.
The Walks outfit were the first to threaten in the second half when Carl Holmes saw his shot blocked en route to goal following a cut-back from Defty in the 53rd minute.
A Bedford breakaway on the hour nearly resulted in the opening goal, but Dillon glanced Eddie Lawley's cross the wrong side of Wilson's left post.
Bloomfield had a shot parried by the home keeper, before Bedford broke downfield to take the lead in the 66th minute when Dillon tucked home a Steve Jackman knock-back from a corner.
In an effort to try to salvage something from the game Lynn manager Taylor threw on Chris Bacon in place of the ineffective Angel.
Bacon's stay on the field lasted all but five minutes before he limped off, to be replaced by David Chick.
Lynn, who created little in front of goal, had half-hearted penalty appeals for a foul on Bloomfield turned down deep into stoppage time.
Bedford: Robinson, Jackman, Taylor, Rydeheard, Howarth, James, Challinor (Blake 89), Stupple, Dillon, Howe (Wildy 72), Lawley. Not used: McElory, Stephens, Fewings. Booked: Howarth.
Lynn: S. Wilson, Blake, Setchell, Matthews, Hammond, Camm, Defty, Holmes, Georgiou (Deane 23), Bloomfield, Angel (Bacon 64 Chick 69). Subs not used: J. Wilson, Higgs.
Referee: W. Ramsey (Coventry).
MoM: Nick Matthews.