Answer
The statement makes sense.
Work Step by Step
My candidate was favored when compared head-to-head with every other candidate and lost the election. The statement makes sense.
If the election uses the pairwise comparison method, then this candidate would win the election. However, there are other voting methods where it is quite possible for a candidate favored in head-to-head comparisons with every other candidate to lose the election.
For example, if the plurality method is used, then the candidate receiving the most first-place votes would win even if this candidate was not favored when compared head-to-head with another candidate.