Ding had climbed back to number five in the world rankings after a poor run.
Ding, a two-time UK Championship winner, had climbed back to number five in the world rankings after a poor run and hoped for a strong showing in the York tournament.
But instead the 29-year-old was crushed by Welshman Jones, who is only ranked 37th in the world.
Ding was level at 2-2 going into the interval, but he was unable to find his rhythm after the break as Jones won all four frames to seal an impressive victory.
Ding is the latest high-profile player to be knocked out of this year's UK Championship following the early exits of Neil Robertson, Stuart Bingham and Judd Trump.