Defending champions Brazil crashed out of the 2011 Copa America at the quarter-final stage on Sunday, losing 2-0 to Paraguay in a penalty shoot-out after it finished 0-0 at the end of extra-time.
Paraguay goalkeeper Justo Villar blocked Thiago Silva's weak effort and Elano, Andre Santos and Fred all missed for Brazil, who were eliminated a day after hosts Argentina lost to Uruguay, also on penalties.
"After the way we played today, I've never seen a more unfair result in my entire career," Brazil midfielder Ramires told reporters.
Paraguay will now make their first appearance in the tournament's semi-finals since 1989, when they play Venezuela.
"Brazil should've won after 90 minutes," Paraguay coach Gerardo Martino said. "Sometimes we get these results. We played entirely differently from how we wanted to play."
Brazil, aiming for their third consecutive Copa America title, leave the tournament with just one win in four matches after a disappointing campaign.
"It's important to keep our calm after a loss and avoid thinking that it was all negative," coach Mano Menezes said. "We improved after the [tough] start in the competition and we will continue workign hard so we can reach the positive results in the future."
"It's always disappointing when things don't go our way. We lost to a team which hasn't won a match yet and now has reached the semifinals. But that's football and we have to learn how to live with that to avoid compromising the work that we've done so far. And at the same time we have to understand what we need to do to improve from now on."