Neji knew he lost, he cannot use his jutsu five more times. He also understood that he will be seriously injured if he were to take a hit. Smart thing to do in this situation would be to give up but his Hyuga pride would not let him. After watching the situation, Genma decided to stop the match. He can tell how dangerous Naruto's jutsu was, even he will be hospitalized for months if hit by it. Neji was a genin, and already survived one rasengan, there was a possibility that he might not survive five rasengan.
Neji was not happy by Genma's decision but Genma used his authority as proctor to declare Naruto as winner. No one made any fuss about his decision, even people of Hyuga clan can tell that Neji cannot win. They were disappointed but they have no problem with the proctor's decision. Naruto happily accepted the decision, he was in very good condition, he took only one hit during the match and it barely cause a bruise on him. People in the arena were surprised by Naruto's one sided victory, they expected more from Hyuga clan's genius.
Next match was supposed to happen between Sasuke and Gaara but Sasuke was not present in the arena so they postponed that match and proceeded with the next match. Shino and Kankuro were supposed to fight in the next round but Kankuro gave up before fighting. Next match was between Shikamaru and Temari. The winner of this match would fight Sakura and the candidate for the semifinals would finalized. People were not expecting much from this match, they were waiting for the match between Sasuke and Gaara. However contrary their expectation, match was interesting but in the end Shikamaru gave up before finishing the match.
There were only two match left before the semifinal, Temari and Sakura would fight in one and Sasuke and Gaara would fight in the next. Since Temari just finished her match, organizers were thinking to let her qualify in the semifinals and let Shino and Sakura face each other for next match since neither of them have fought in any match. They were about to announce the match between Sakura and Shino when Sasuke showed up. Crowd in the arena were waiting for Sasuke's match and when he finally showed up, everyone become excited and started shouting his name. Announcement was made that next match is going to be between Sasuke and Gaara. Both of them made their way to the centre of arena. Gaara was looking even crazier than before.
SASUKE: "So you are the jinchuriki of that raccoon. I guess the pathetic seal use to lock him inside you is the reason he is able to mess with your head. For the weakest tailed beast, he sure likes to create trouble. Don't worry Gaara, I will beat your ass and use a powerful seal, so that he won't be able to drive you crazy."
What Sasuke said made Shukaku very mad, Kurama always treated him as weakest of tailed beast, he hated Kurama for that. Now Sasuke said exactly that, he wanted to crush Sasuke more than anything. Baki and Orochimaru (pretending as Kazekage) got worried, Gaara was the greatest weapon of Sand village and important for Konoha crush plan. If he gets neutralized before they even start attacking, that would be a problem. Sasuke was deliberately provoking Gaara, he wanted them to start their plan. Sasuke knew that Danzo and root would not take any action when Sand and Sound village attacks Konoha. Danzo was hoping that Orochimaru would finish off third Hokage. Sasuke was also hoping that, he knew that fourth Hokage would also be joining Orochimaru since he released him from dead demon seal. He was waiting for chaos to ensue in village so that he can take advantage of situation and send Danzo on his way to join the third Hokage in afterlife. He left this morning early to infiltrate the hideout of root organization. He had took down a root ninja and transform into him down to his chakra, he also had located Danzo and waiting for right time to take action.
Sasuke present in the arena was actually a shadow clone. He sent the shadow clone to monitor the situation outside, the moment his shadow clone dispelled he would take action. He provoked Gaara to make him lose control, the more chaos occurs in the village, more he would be sure that no one will interfere in the root hideout. He planted a lot of paper bombs all over the root base and he made many traps around Danzo's location so that reinforcement could not reach easily. He was planning to take Danzo by surprise.
Danzo has clear idea of Orochimaru's plan to take down third Hokage. He was waiting for third Hokage's demise. Once that happens, he would take action and chase the invaders out of village. He will become the savior of Konoha and finally his dream of becoming the Hokage will be achieved. He was hoping that third Hokage would die and village still be in critical situation. Only variable to his plan was Jiraya, if Jiraya took action then Danzo can forget about being the village's savior and even if third Hokage dies, village council will insist on Jiraya be the next Hokage. According to his sources, Jiraya left the village few days ago and he was hoping that Jiraya comes late so that he can take action. If Jiraya comes back early then he would not bother sending out root ninja. Root was his private force and if they die while fighting then it will be equivalent to weakening himself without getting any benefit.