Atwal, who carded 72 on first day and needed a sub-par round to make the weekend, turned in a disappointing 75 and crashed out at the Old White TPC Course yesterday.
The cut came at one over. Atwal will play next week at the WGC and then the PGA Championships next month. Brendon De Jonge shot a three-under 67 yesterday and was tied with Webb Simpson at seven-under midway through the tournament.
Among those failing to advance to weekend play were Phil Mickelson, whose streak of making 17 straight cuts ended, and defending champion Stuart Appleby. Both finished three-over, missing the cut by two strokes. Overnight leader Trevor Immelman (70) slipped to third.