The tempo - and scoring pace - kicked up a notch in period three.
Pierre-Luc Dubois put the Canadians ahead 2-1 just over four minutes into the frame, one-timing a puck home from the right circle after linemate Brandon Hagel sifted a hard pass across the Swedish zone.
But Sweden equalized just before the midpoint of period three on a point blast from defenceman Erik Karlsson.
Grundstrom scored his second goal of the game four minutes later, giving Sweden a 3-2 lead with 6:18 to play.
Marcus Johansson sealed Canada’s fate with an empty-netter five seconds from time.
Binnington made 29 saves for the Canadians, while Gustavsson turned aside 20 shots in the Swedish crease.
Mangiapane finished the contest with an assist and three shots on goal - the second-highest total from a Canadian on the day - in just under 13 and a half minutes of playing time.
He concluded the tournament tied for fifth among Canadian scoring leaders with seven points (1G, 6A).