The Leeds Warrior saw his highly-anticipated featherweight bout with the Mexican called off ahead of the third round due to a cut above Lara's left eye.
Warrington and his counterpart appeared to clash heads in the second round which left referee Steve Gray no choice but to wave an early end to the night.
The fight was ruled a technical draw with four rounds needing to have been completed to force a result.
"I am confused, I don't know what to say. Honestly I felt I could burst into tears when the ref waved it off," Warrington said post-fight.
"I thought I caught him in the first round and I thought I could see a nick there and keep targeting it. When I dived in there was a head clash and I am absolutely gutted."
Warrington was looking to avenge February's shock defeat to the 23-year-old Mexican in front of his adoring home crowd as 20,000 fans packed into Headingley stadium.
The former IBF champion felt he had started strongly and wanted to give his support something to cheer about following a first professional defeat six months ago.
"I sat down after the first round and thought to myself 'how did this guy knock me out?'. The only time I got caught was in the second when I was going reckless," added Warrington.
"I wanted to give the crowd a show, we had a few game plans but I am gutted.
"You go on a rollercoaster of emotions in the changing room, you start doubting yourself and then you convince yourself you are the best in the world.
"After the first round I thought 'wow I am seeing everything' I thought I could dictate the fight."