The first person to lose his land speed record on the salt was the first person to do so: Teddy Tetzlaff.
The AAA Contest Board - in business BEFORE the FIA -- was the group who ran all things motorsport in the USA. If you tried to play a game you got slapped with sanctions and heavy fines.
Bill Rishel had obtained a sanction for Tetzlaff's runs , but ONLY a half-mile sanction (don't understand why that was, maybe fees?)
However, while Tetzlaff handily broke the 1/2 mile record, Rishel starts PR campaign in the press saying the mile record was eclipsed because of all the people (150 +)who were on-site with their stopwatches (a common timing device of the day) timed him through the mile faster ans quicker than the existing record.
The AAA told Rishel to stop. Rishel did not. AAA pulled the sanction and the ensuing scandal kept the Bonneville Salt Flats off the racing radar for another 21 years until Ab Jenkins convinced Reed Railton of its merit who then helped Jenkins bring Cobb, Eyston and Campbell to the salt in 1935.
So yes, y'all better behave yourselves when running for a world record - the efforts and reputations of all who came before you are at stake.