Rangers had taken a lead against play off bound Watford before it all went wrong.
Nygaard scored a penalty to make it 1 - 0 in the 39th minute, he celebrated by ripping off his shirt to earn himself what turned out to be a costly yellow card.
Just a few mins later and Rangers were on the attack again. Paul Furlong broke free and lobbed Watford keeper Ben Foster, Furlong reeled away to celebrate but the ball bounced against the crossbar and into Foster's arms. He then cleared long downfield and within a blink of an eye Ashley Young smashed home the equaliser.
Within two minutes Rangers were down to 10 men when Nygard was involved in a scuffle and picked up his second yellow and was sent off.
Rangers played the second half with 10 men and then completed a miserable day when Georges Santos headed into his own net with 12 mins to go.
"Georges is devastated, and Marc knows he let the team down by getting sent off," said Waddock. "He is just so keen to do well, but sometimes he needs to calm down a little.
"I will be looking at the incident, and if Marc needs to be fined, he will be. He made it difficult for the other players, because it was a hot day.
"This game summed up the luck we have had over the last five or six weeks, and we hope next season it will turn for us."