Four-time winners Germany suffered another early World Cup exit when they were eliminated in the last 32 on penalties by Paraguay following a lacklustre 1-1 draw on Monday.
Kai Havertz shot straight at goalkeeper Orlando Gill in the first kick of the shoot-out, while Nick Woltemade also saw his penalty saved and Jonathan Tah blasted over the bar as Paraguay won 4-3 on spot-kicks.
It means a third early elimination in a row at men's World Cups for once mighty Germany, who at least reached the knock-outs for the first time since their last triumph in 2014.
Havertz told broadcaster ZDF: "The only thing I can say is sorry. To disappoint again is not a nice feeling. Paraguay have of course defended deep and that made it hard."
Asked if Germany were now a second-tier international nation after two World Cup group-stage exits and a last-32 defeat, he said: "Yes, it seems so for sure."
Jonathan Tah's powerful header on 102 minutes had looked to have booked the Germans' passage. But referee Jalal Jayed of Morocco was sent to the monitor by the video assistant and decided Waldemar Anton had fouled keeper Gill.
The touch between the player and keeper was minimal as the corner came in, but Orlando went down and that was enough for the officials.
Julio Enciso's bullet header on 42 minutes - amid almost no pressure from Germany's defenders - had given Paraguay the lead on a rare foray forward.
Paraguay's low block was difficult to penetrate in hot conditions near Boston, but Germany also lacked guile or invention.
They eventually levelled when Havertz glanced in Florian Wirtz's cross on 54 minutes and the game went to extra-time and penalties.
Paraguay face favourites France or Sweden in the last 16 on Saturday in Philadelphia. Les Bleus take on the Scandinavians on Tuesday.
Germany coach Julian Nagelsmann started with Deniz Undav, who had scored three goals off the bench including both in the group win over Ivory Coast.
Jamal Musiala, still not at his best after a leg break this time last year, dropped to the bench while left back Nathaniel Brown was fit again having missed the 2-1 loss to Ecuador in the last group game.
Thursday's defeat to South Americans, albeit with Germany already having wrapped up first place in the group, caused consternation in the press back home.
Paraguay, famed for their dark arts and third-placed in their group, were feared by some German pundits to be as much as a threat as Ecuador and so it proved.
Bad run goes on
Undav scooped the ball over in the first decent chance for Germany, but opportunities were few and far between as the Stuttgart man failed to have the same impact as he has done as a substitute.
The last time German shut out a team at a World Cup was the 2014 final against Argentina and the run goes on after Enciso's header.
Germany's 40-year-old goalkeeper Manuel Neuer, who came out of international retirement for this World Cup, had been criticized in German media and by ex-players for his displays so far but the 2014 World Cup winner could do nothing to prevent the goal.
His defenders could have, with Matias Galarza having time to cross.
Joshua Kimmich had a shot saved just before the break but it was just not enough from Nagelsmann's men.
In the second half, somewhat out of the blue, Wirtz's diagonal cross from the left with his right foot was met with the slightest of touches by Arsenal's Havertz and nestled into the corner of the goal.
Musiala then replaced Undav on the hour but to little effect.
Another substitute, Woltemade, had a shout for a penalty for handball in extra-time dismissed. It was debatable whether Gustavo Gómez's arm was outstretched enough.
The Germans were in the ascendancy but without clear-cut chances until Tah's controversially chalked-off goal. Anton tried to make amends with his own header from a Brown corner late in extra-time, but it was straight at the keeper and penalties followed.
Hero Gill, who had studied Germany's penalty takers, remarked: "It was a classy game from us, we have gone through against Germany. I am proud, the whole of the people in Paraguay are proud. I would like to dedicate this win to a nephew of mine who is the hospital."
Paraguay, whose previous match against Germany at the tournament was in 2002 when they lost 1-0 in last 16, gained revenge on penalties.
La Albirroja qualified for the World Cup for the first time since 2010, when they reached the last eight - their best finish.
They are set to host one game in the six-nation 2030 edition and before that can celebrate a famous victory over a Germany side who are a long way short of their glory days.
