A washing machine appliance includes a motor for selectively rotating a wash basket within a wash tub. A controller is configured for initiating a spin cycle by ramping up the speed of the wash basket to a target speed. The controller monitors a measured basket speed to determine whether the measured basket speed has reached a predetermined acceleration reference speed within an acceleration time limit or whether the measured basket speed has fallen below a dropout reference speed for a dropout time limit. If either condition exists, the controller adjusts the operation of the washing machine appliance, e.g., by reducing the wash basket speed to permit wash fluid entrained in the annulus to escape and reduce drag on the wash basket.