Massachusetts [US], June 30 (ANI): A controversial VAR decision that ruled out Germany's potential extra-time winner proved decisive as Paraguay stunned four-time champions Germany in a penalty shootout to book their place in the Round of 16 of the FIFA World Cup 2026, The Athletic reported.

The Round of 32 encounter at Gillette Stadium ended 1-1 after 120 minutes before Paraguay kept their composure from the spot to seal a famous victory, with Germany missing three penalties in the shootout.

Germany believed they had secured the win in the 101st minute when Jonathan Tah headed home from a corner. However, after German players celebrated the goal, referee Jalal Jayed of Morocco was instructed to review the incident on the pitch-side monitor following a VAR intervention, according to The Athletic.

According to The Athletic, the goal was disallowed after the referee ruled that Germany defender Waldemar Anton had impeded Paraguay goalkeeper Orlando Gill's movement while attempting to reach the cross, constituting a foul in the build-up.

The decision forced the match into a penalty shootout, where Paraguay held their nerve to complete one of the biggest upsets of the tournament and eliminate one of the pre-tournament favourites, The Athletic reported.

The defeat marked Germany's earliest exit from the FIFA World Cup 2026, while Paraguay progressed to the Round of 16 after a memorable night defined by VAR controversy, defensive resilience and clinical finishing from the penalty spot.

It was also only their second defeat on penalties at a major international tournament, the first coming against Czechoslovakia in the 1976 UEFA European Championship final (5-3), as per OptaJoe.

The result also ranks among the biggest knockout upsets in modern World Cup history. Germany entered the tournament ranked 10th in the FIFA World Rankings, while Paraguay were 41st, a gap of 31 places.

Since 1994, only three World Cup knockout eliminations have featured a larger rankings disparity: Spain's defeat to Russia in 2018 (60 places), Italy's loss to South Korea in 2002 (34 places), and Spain's quarter-final exit to South Korea in 2002 (32 places). (ANI)