The Kaulig Racing driver was pinged for falling out of line and was forced to serve a drive-through penalty under green.
That dropped the #97 out of contention and eventually he went a lap down.
Van Gisbergen had been running 22nd after a slow pit stop at the end of Stage 2 dropped him from just outside the top 10.
The Kiwi showed promising pace throughout the race and had run inside the top 10 on several occasions throughout Stage 1 and Stage 2.
A late race caution got him back on the lead lap as the first car one lap down but it was too little too late.
Rain swept across the speedway with the field under the control of the safety car and that brought out the red flag.
After a 15-minute delay, the race restarted with #7 pilot Justin Allgaier in the lead with Sammy Smith in the #8 alongside.
Initially, it was Smith who got the jump but Allgaier got a strong run out of Turn 2 with support from the #18 of Sheldon Creed.
The #8 got hung out to dry when Noah Gragson in the #30 formed a new line on the bottom with support from the #21 of Austin Hill and Smith went tumbling down the order as the field swept by.
Soon enough, Allgaier stretched his legs out to a four car length’s lead to leave Creed and the rest of the field to fight over second.
Allgaier took the white flag before the carnage kicked off.
On the run to Turn 3, the #45 of Caesar Bacarella got loose and clipped the right rear of Carson Kvapill.
As the #88 spun, cars took evasive action causing the #81 Chandler Smith and Kyle Sieg in the #28 to spin.
A replay of the last-lap incident at @MISpeedway. pic.twitter.com/0xaqObSqAW
— NASCAR Xfinity (@NASCAR_Xfinity) August 17, 2024
Backwards, the #28 lifted into the air and landed on its roof before sliding down the asphalt and onto the grass. It flipped once more before landing on its wheels.
The yellow was instantly drawn and Allgaier was credited with the win.
Results: NASCAR Xfinity Series Cabo-Wabo 250, Michigan International Speedway
| Pos | Num | Driver | Laps | Diff |
| 1 | 7 | Justin Allgaier | 128 | — |
| 2 | 18 | Sheldon Creed | 128 | 0.343 |
| 3 | 20 | John Hunter Nemechek | 128 | 0.519 |
| 4 | 5 | Anthony Alfredo | 128 | 0.690 |
| 5 | 30 | Noah Gragson(i) | 128 | 0.806 |
| 6 | 8 | Sammy Smith | 128 | 0.854 |
| 7 | 19 | Taylor Gray(i) | 128 | 1.022 |
| 8 | 38 | Matt DiBenedetto | 128 | 1.163 |
| 9 | 45 | Caesar Bacarella | 128 | 2.142 |
| 10 | 48 | Parker Kligerman | 128 | 2.150 |
| 11 | 16 | AJ Allmendinger | 128 | 2.336 |
| 12 | 42 | Leland Honeyman (R) | 128 | 2.814 |
| 13 | 39 | Ryan Sieg | 128 | 3.125 |
| 14 | 43 | Ryan Ellis | 128 | 3.499 |
| 15 | 51 | Jeremy Clements | 128 | 4.372 |
| 16 | 27 | Jeb Burton | 128 | 4.655 |
| 17 | 97 | Shane Van Gisbergen (R) | 128 | 4.846 |
| 18 | 21 | Austin Hill | 128 | 5.161 |
| 19 | 11 | Josh Williams | 128 | 5.728 |
| 20 | 31 | Parker Retzlaff | 128 | 5.840 |
| 21 | 7 | Patrick Emerling | 128 | 5.966 |
| 22 | 26 | Jeffrey Earnhardt | 128 | 6.198 |
| 23 | 92 | Josh Bilicki | 128 | 6.510 |
| 24 | 29 | Blaine Perkins | 128 | 6.640 |
| 25 | 14 | Logan Bearden | 128 | 11.065 |
| 26 | 88 | Carson Kvapil | 128 | 33.589 |
| 27 | 81 | Chandler Smith | 128 | 52.209 |
| 28 | 28 | Kyle Sieg | 127 | 1.217 |
| 29 | 2 | Jesse Love (R) | 127 | -1 lap |
| 30 | 0 | Cole Custer | 111 | -17 laps |
| 31 | 35 | Joey Gase | 101 | -27 laps |
| 32 | 91 | Kyle Weatherman | 94 | -34 laps |
| 33 | 44 | Brennan Poole | 71 | -57 laps |
| 34 | 10 | Daniel Dye | 66 | -62 laps |
| 35 | 15 | Lawless Alan | 65 | -63 laps |
| 36 | 9 | Brandon Jones | 50 | -78 laps |
| 37 | 1 | Sam Mayer | 49 | -79 laps |
| 38 | 98 | Riley Herbst | 48 | -80 laps |
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