Last year's Australian Open runner-up Ana Ivanovic capitulated under the floodlights on Friday, sliding out following a 7-5, 6-7, 6-2 defeat by Russia's Alisa Kleybanova.
The French Open champion got off to a solid enough start but fell apart when leading 5-3 in the first set and soon found herself 7-5, 3-0 down having lost seven successive games.
The 19-year-old Muscovite was hitting freely but Ivanovic fought back to win the second set in a tiebreak.
Kleybanova broke again early in the deciding set and sealed victory to set up a fourth round clash with Jelena Dokic.
Spurred on by a pumped up capacity crowd, Jelena Dokic continued her fairytale run with her second successive victory over a seeded player.
Dokic, riding high on the wave of public sympathy, upset Denmark's 11th seed Caroline Wozniacki 3-6, 6-1, 6-2 to advance to the fourth round of the year's first grand slam.
The Australian's victory came hot on the heels of her second round win over Russia's 17th seed Anna Chakvetadze, which was her first over a player in the top-20 in five years.
In another match, Alize Cornet, the 15th seed French, beat Daniela Hantuchova 4-6, 6-4, 6-2.
Defending champion Novak Djokovic survived his first test while a revitalised Andy Roddick stayed firmly on track for the final stages. Serbia's Djokovic dropped his first set, against unheralded Bosnian-American Amer Delic, as Roddick brought French veteran Fabrice Santoro's last appearance here crashing to a halt. Argentine eighth seed Juan Martin del Potro set up an enticing last-16 clash with fellow rising star Marin Cilic, who ousted no. 12 David Ferrer in the day's biggest upset.
Djokovic lost the second set and was taken to a tense fourth-set tie-breaker in an ethnically charged match against the 127th-ranked Delic. Roddick flattened Santoro 6-3, 6-4, 6-2 to remain on course for a quarter-final with Djokovic.
Roger Federer beat Marat Safin in straight sets to reach the last 16. Federer, seeking his 14th Grand Slam, hit sparkling form as he overwhelmed his old rival 6-3, 6-2, 7-6 (7/5) to stay on course for a semi-final match-up with Djokovic.
Indians had a great day in the doubles play. Mahesh Bhupathi, Sania Mirza, Leander Paes and Rohan Bopanna all won their matches. Bhupathi and Sania knocked out sixth-seeded Czech pair Pavel Vizner and Kveta Peschke, overcoming a second-set fight-back, 6-2, 6-4 in the first round. Paes and Lukas Dlouhy recorded a 6-3, 6-4 victory over Ivan Ljubicic and Fabio Fognini to move into the third round.