WWE has their own way of booking things. Vince McMahon’s patterns are pretty consistent at this point, and his philosophy is unique to himself as well. He also doesn’t regard win/loss records as much as others.
Lars Sullivan destroyed Jeff Hardy on SmackDown last week. That was Hardy’s final match on SmackDown prior to joining the RAW brand full time. His name was called over to the red team during the 2020 WWE Draft.
According to the Wrestling Observer Newsletter, Vince McMahon’s booking mindset for beating Hardy in such convincing fashion was a way for him to leave SmackDown because once he’s on the other brand those old losses don’t matter.
The mentality of beating a top guy like Hardy so decisive is that once you switch brands all your losses don’t count. Whether that’s the case in real life, that is how they view it.
Lars Sullivan will continue on as The Freak on SmackDown, and that might even come with a long-term name change. Jeff Hardy’s momentum as a top Superstar won’t be hurt on the RAW brand as he will still be booked as Jeff Hardy.