I don't think the loss meant much other than the majority of the team was still in extended All Star Break Mode. I think they were subconsciously satisfied with their first half accomplishments and just didn't get focused. Maybe a couple of guys relaxed after realizing they wouldn't be dealt.
Their team D sucked. It's been a while since it was as bad as last night.
It may take them a couple of games to get their defensive mindset back but hopefully they do better in Denver.