Interplay of topology and competing interactions can induce new phases and phase transitions at finite temperatures. We consider a weakly coupled two-dimensional hexatic-nematic XY model with a relative Potts degrees of freedom,and apply the matrix product state method to solve this model rigorously. Since the partition function is expressed as a product of two-legged one-dimensional transfer matrix operator, an entanglement entropy of the eigenstate corresponding to the maximal eigenvalue of this transfer operator can be used as a stringent criterion to determine various phase transitions precisely. At low temperatures, the inter-component Potts long-range order (LRO) exists, indicating that the hexatic and nematic fields are locked together and their respective vortices exhibit quasi-LRO. In the hexatic regime, below the BKT transition of the hexatic vortices, the inter-component Potts LRO appears, accompanying with the binding of nematic vortices. In the nematic regime, however, the inter-component Potts LRO undergoes a two-stage melting process. An intermediate Potts liquid phase emerges between the Potts ordered and disordered phases, characterized by an algebraic correlation with formation of charge-neutral pairs of both hexatic and nematic vortices. These two-stage phase transitions are associated with the proliferation of the domain walls and vortices of the relative Potts variable, respectively. Our results thus provide a prototype example of two-stage melting of a two-dimensional long-range order, driven by multiple topological defects.

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