India's Mahesh Bhupathi stormed into the doubles semifinals while Leander Paes faced a shock exit in the mixed doubles on Tuesday.
Third seeded Bhupathi and his Bahamian partner Mark Knowles beat a resilient Lopez and Verdasco 6-1, 2-6, 6-4 in nearly an hour and a half at Melbourne Park.
In mixed doubles, top seeds Paes and Cara Black of Zimbabawe were stunned by Swiss Patty Schnyder and South Africa's Wesley Moodie in the mixed doubles pre-quarterfinals, losing 1-6, 5-7.
Bhupathi and Knowles broke the Spaniards twice to take the first set in 26 minutes but Lopez and Verdasco fought back to draw level in the second set.
In the juniors, top seed Yuki Bhambri marched into the third round with a 7-6(1), 6-0 win over Australian Stephen Hoh. The Indian will next meet 13th seeded Croat Dino Marcan.