The former Strikeforce and DREAM champion was set to meet Alexander Gustafsson in a key light heavyweight contest. Gustafsson, however, suffered a cut last week in training and was not cleared.
"Coming in to this fight, I was injured and last week, I got a cold," Mousasi said. "I guess some do lay-and-pray on the ground, and I maybe did that in the striking."
Mousasi (34-3-2) wasn't able to score his 26th first round victory, but he was hardly in danger, picking Latifi (7-3) apart.
"I knew he was a wrestler and I didn't want him to close the distance," Mousasi said. "I fought smart."
Mousasi added that he would welcome a match with Gustafsson in the future, saying, "Alexander is a gentleman and a true sportsman. I wish him the best of recovery."