Lawler and Hart did face each other after the Doink match. Hart made him quit, wouldn't release the hold, and then lost by DQ for failing to break after the match.
Very bad execution on that one. Lawler quits, and practically every ref and backstage "professional" (Patterson, etc) storms the ring and tries to convince Hart to let Lawler go. So they all stand there, pleading with Hart. And then they argue with each other. Instead of the 10-12 fuckheads getting together and pulling him off, they stand around and argue. All the while, Vince is screaming into the mic. Also during the match, the camera shows Owen and Bruce Hart, who are overacting all they can. Owen looks rough with his mullet.
Rumor has it, that Luger was supposed to win the belt...but he got hammered at a bar before the match, and ran his mouth about how he was going to be champ. That ruined it. He was then slated to drop the belt to Ludwig Borga of all people, but Luger's big mouth forced a change of plan...which then led to Bret becoming champ.