Schauffele came out of the gates hot in Round 2 with seven birdies on the front nine to make the turn at 29.
"Yeah, it was nice," the 26-year-old said afterward. "I had a chip-in there, two long putts. Some of those holes you're not really trying to birdie them, you're kind of just trying to leave yourself an uphill 35-footer and fortunately, I made a couple of them. It was a nice stretch."
However, he stalled on the closing nine with only one birdie to settle for an 8-under round.
"(It) got a little bit stale there on the other side," he added. "(The) pace of play slowed down a lot, kind of hot, easy to let the mind wander. Upset I didn't make more birdies but pleased I didn't make any bogeys."
Schauffele looks poised to add to his stellar resume in limited-field, no-cut events after his two-day performance at Shadow Creek in Las Vegas. Three of his four career wins have come in tournaments with no cut.
Here's how the leaderboard stands through 36 holes:
|Place||Player||To Par||R2 Score|
Hatton, who led after Day 1, made seven birdies on Friday but was held back with three bogeys. He lost over half a stroke with his approach shots in Round 2, a stark contrast from his opening round where he gained 4.6 shots with his irons.
Defending champion Justin Thomas jumped into contention with a 6-under 66. His 31 on his closing nine vaulted him into a tie for eighth.
Matthew Wolff, who finished in a runner-up position in his previous two events, sits in a share of last place at 9-over.