Roger Federer suffered a shock loss in the Australian Open third round on Friday as Andy Murray and Rafael Nadal advanced.
Swiss second seed Federer's exit was his earliest at Melbourne Park since 2001, when Arnaud Clement beat him.
Andreas Seppi claimed a 6-4 7-6 (7-5) 4-6 7-6 (7-5) victory on Rod Laver Arena, his first win in 11 meetings against Federer and just seventh in 74 meetings against top-10 players.
The Italian finished with 50 winners and 40 unforced errors in a stunning performance.
Third seed Nadal showed no signs of the wear and tear that he endured in the second round, as he stormed into the last 16 with a 6-1 6-0 7-5 victory over Dudi Sela.
Sela felt the full brunt of a fired-up Nadal, who was taken to five sets by Tim Smyczek two days earlier.
Nadal struck 43 winners, and served at 68 per cent in a dominant performance under lights on centre court.
Murray rolled into the fourth round with a thrashing of Joao Sousa.
The British sixth seed claimed a 6-1 6-1 7-5 victory over the Portuguese right-hander.
Murray hit 39 winners to go with his 29 unforced errors, completing his victory in two hours six minutes.
Grigor Dimitrov needed three hours 28 minutes in Melbourne's heat to edge 2006 runner-up Marcos Baghdatis 4-6 6-3 3-6 6-3 6-3.
The Bulgarian 10th seed had won five of his previous six matches against Baghdatis but needed to produce some of his best in their third-round clash.
Dimitrov, considered a chance of winning his maiden grand slam in Australia, hit 42 winners in his victory.
It was a different story on Margaret Court Arena, where Tomas Berdych hit 20 aces to beat Serbian Viktor Troicki 6-4 6-3 6-4.
The Czech seventh seed was impressive, finishing with 55 winners in the convincing victory.
Kevin Anderson progressed to the last 16 at Melbourne Park for consecutive years, dismissing 24th seed Richard Gasquet 6-4 7-6 (7-3) 7-6 (8-6).
Anderson, seeded 14th, hit 52 winners to Gasquet's 36.
Bernard Tomic won an all-Australian third-round encounter over Sam Groth, progressing 6-4 7-6 (10-8) 6-3.
Tomic committed just eight unforced errors against the big-serving Groth, who sent down 17 aces in defeat.
Later, Nick Kyrgios was the second local into the last 16 after seeing off Malek Jaziri 6-3 7-6 (8-6) 6-1 on his sixth match point.
Kyrgios will meet Seppi for a spot in the quarter-finals.