Germany have suffered one of the biggest shocks in World Cup history, crashing out of the Round of 32 after losing 4-3 on penalties to Paraguay.

The four-time world champions had never previously lost a World Cup penalty shootout, but that record was ended sensationally by the valiant South Americans, who defended manfully for 120 minutes before central defender José Canale hit the winning spot-kick in sudden death.

In the first half, Paraguay took a shock lead in the 42nd minute. Matias Galarza delivered a cross, and Julio Enciso arrived unmarked on the penalty spot to head past Manuel Neuer, Paraguay’s first-ever goal in a World Cup knockout match.

The goal came against the run of play. Germany dominated possession but struggled to break down Paraguay’s well-organised defensive block.

Germany came out with greater intensity after the break. The equaliser arrived in the 54th minute when Florian Wirtz delivered a deep cross, and Kai Havertz glanced a clever header into the far corner.

Germany pushed for a winner. Jonathan Tah had a header disallowed in extra time for a foul harshly given by VAR. 

The penalty shootout that followed was dramatic. Paraguay missed two chances to win it, but Germany could not capitalise. Jonathan Tah, who had seen his extra-time goal ruled out, skyed his penalty over the bar, allowing José Canale to step up and score the winning spot-kick.

Germany’s shooters — Kai Havertz, Nick Woltemade, and Jonathan Tah — all failed to convert.

This is a devastating defeat for Germany. They have now failed to progress beyond the first knockout round in three consecutive tournaments. The four-time champions are in crisis.

For Paraguay, though, this is the greatest result in their World Cup history. They will face either France or Sweden in the Round of 16 in Philadelphia on July 4.