Paraguay produced the biggest shock of the FIFA World Cup so far by eliminating four-time champions Germany in a dramatic penalty shootout on Monday, while Brazil escaped Japan with a stoppage-time winner and Morocco edged the Netherlands in another shootout to complete a gripping day of knockout football.
Germany's hopes of another deep World Cup run came to a crushing end at Gillette Stadium in Foxborough, where Julian Nagelsmann's side suffered the nation's first-ever defeat in a World Cup penalty shootout after winning each of their previous four.
Paraguay goalkeeper Orlando Gill emerged as the hero, saving penalties from Kai Havertz and Nick Woltemade before Jose Canale blasted home the decisive spot kick moments after Jonathan Tah fired Germany's final attempt over the crossbar.
"We analyzed every player and every detail of the penalty takers," Gill said. "Thank God I was able to save two penalties. This is a privilege. We eliminated a champion."
Nagelsmann offered a blunt assessment after Germany's stunning exit.
"We didn't do enough today," he said.
The South Americans looked fearless from the opening whistle and were rewarded just before halftime when Julio Enciso broke the deadlock in the 42nd minute.
Germany responded after the break through Havertz, whose composed finish in the 54th minute leveled the contest and shifted momentum toward the Europeans.
Extra time produced more drama. Tah thought he had headed Germany in front, only for VAR to rule the goal out, leaving the match locked at 1-1 and forcing penalties.
Gill's heroics then turned the shootout decisively in Paraguay's favor. Although Paraguay twice missed opportunities to finish the contest earlier, Canale made no mistake when the decisive chance arrived, sending the South American nation into the round of 16.
Paraguay will face either France or Sweden for a place in the quarterfinals.
Brazil came within seconds of one of the tournament's biggest surprises before Gabriel Martinelli rescued the five-time champions with a dramatic 95th-minute winner in a tense 2-1 victory over Japan in Houston.
Japan looked poised to produce a famous upset after Kaishu Sano capped a lightning counterattack with a superb finish in the 29th minute.
Brazil gradually asserted control after halftime and equalized in the 56th minute when Casemiro powered a header into the far corner following an inviting cross from Gabriel Magalhaes.
The match appeared destined for extra time until Japan surrendered possession in stoppage time. Ao Tanaka was dispossessed near his own penalty area, allowing Martinelli to collect the loose ball, steady himself and drive home the winner that spared Brazil from an embarrassing exit.
"I can't find the words to describe the joy in my heart," Martinelli said. "Seeing all those fans on their feet, my parents, my friends. I can't explain it."
Japan coach Hajime Moriyasu praised his players despite the heartbreaking defeat.
"Even people who don't really know or pay much attention to football have come to see that Japan is fighting to become world champion and is growing and challenging itself," he said.
Brazil will meet either Ivory Coast or Norway in the round of 16.
Morocco also needed penalties to reach the last 16, defeating the Netherlands 3-2 after a dramatic 1-1 draw in Monterrey to set up a meeting with co-hosts Canada.
The match carried added emotion for the Dutch after Cody Gakpo, playing only days after he and partner Noa van der Bij announced the loss of their unborn son, gave the Netherlands a 72nd-minute lead.
The Liverpool forward capped a flowing move after Crysencio Summerville's determined run created the opening, seemingly putting Ronald Koeman's side on course for victory.
Morocco, however, refused to fold.
Deep into stoppage time, Chemsdine Talbi delivered a dangerous cross that Issa Diop glanced past Bart Verbruggen, stunning the Dutch and forcing extra time.
Verbruggen kept the Netherlands alive with an outstanding point-blank save from Soufiane Rahimi during extra time, but the match eventually came down to penalties.
The shootout swung repeatedly. Teun Koopmeiners converted the Netherlands' opening kick before Neil El Aynaoui missed for Morocco. Achraf Hakimi then struck the post, handing the Dutch another opportunity to seize control.
Instead, substitute Justin Kluivert and Quinten Timber both failed from the spot, while Morocco goalkeeper Yassine Bounou made the defining save by denying Summerville's fifth penalty.
That left Ismael Saibari, who had scored in each of Morocco's three group-stage matches, with the chance to finish the job. The midfielder confidently fired into the bottom-left corner as Verbruggen guessed the wrong way, sealing Morocco's place in the knockout stage.
The defeat continued the Netherlands' frustrating record in World Cup shootouts. Although the Dutch have not lost a World Cup match in regulation time since 2006, they have now been eliminated in three of their last four penalty shootouts at the tournament.
Morocco coach Mohammed Ouahbi praised his team's resilience.
"We needed calm and to realize our abilities," he said. "We deserved to qualify. Sometimes you have to accept winning in this way when it is a knockout match."
Koeman was left to rue his side's inability to close out the game.
"Maybe at times Morocco had the better opportunities, the most dangerous moments, but we were leading and they didn't really see a solution," he said. "Then there was a lucky assist that scored a goal, and that's obviously even more bitter when it's in injury time."
