UNCW hopped out to an early 22-15 lead midway through the first half, but eighth ranked Indiana seized control of the game, and midway through the second half led 74-46.
The Seahawks defense was lit up by the Hoosiers, who shot over sixty percent for the game, and they were beaten soundly 95-71.
Freshman sensation Eric Gordon led the way for Indiana as he poured in thirty points on 8-12 shooting from the floor and 12-13 from the charity stripe.
Todd Hendley led the Seahawks with twenty points while Chad Tomko chipped in with 17 as he hit five of seven three pointers.
The Seahawks will continue their Midwestern road trip on Friday when they face Longwood, 2-3.