That's probably it.
Throw out the mental illness, and what you have is a mutilated man pretending to be a woman, who has been beating actual women at his sport.
He's just now been defeated by a mutilated woman, pretending to be a man.
That seems improbable, because no matter what mental illnesses or mutilations are involved, a man should still have a strong advantage over a woman in this sport. That is why the mutilated man pretending to be a woman has been so easily defeating actual women.
It occurred to wonder to me what the relationship is between steroids and testosterone. It turns out that testosterone •IS• a steroid.
So, the mutilated woman pretending to be a man, is probably taking testosterone, which is the same thing as taking steroids. Depending on how much she's taking, she might very well have gained enough strength to defeat an actual man, especially one whose testosterone production is artificially stunted.
Outside of the lunatic world of transgenderism, for an athlete to artificially take testosterone would be cheating, and cause for disqualification; exactly the same as taking any synthetic steroids.
I guess there is some poetic justice here, that a freak who, as a mutilated man, is cheating at a sport by competing against women against whom he has a natural advantage, has been defeated by a woman who is cheating even more outrageously than he has been, but he's in no position to cry foul about the cheating that has been used to defeat him; because that cheating is “justified” by the same deranged logic as his own cheating.