Arsenal suffered a stunning defeat in the Carabao Cup on Tuesday, falling to League Two side Fleetwood Town on penalties in a match that has been labeled the greatest upset in the competition's history.

The Premier League champions were held to a 1-1 draw after extra time, with Fleetwood securing their place in the quarter-finals after a dramatic shootout.

The match took place at Fleetwood's Highbury Stadium, a venue with a capacity of 5,327, a stark contrast to Arsenal's usual surroundings. The game began with an unusual interruption when a drone hovered over the pitch, causing a seven-minute delay. The drone operator was later apprehended by police.

Fleetwood took the lead in the 21st minute through Aaron Loupalo-Bi, who finished past Arsenal goalkeeper Ilhan Meslier after a through ball. The home crowd erupted as the club's goal music, 'Captain Pugwash', played.

Arsenal introduced Martin Odegaard at halftime, which shifted the momentum of the game. They equalized five minutes after the interval when Viktor Gyokeres scored following a cross from Ceadach O’Neill and subsequent play in the box. Jay Lynch, Fleetwood's goalkeeper, made a crucial save to deny Kai Havertz shortly after.

Late in the game, Fleetwood's 16-year-old substitute Max Dowman was shown a straight red card for kicking an opponent while he was on the ground. Despite being reduced to 10 men, Fleetwood held firm.

In the penalty shootout, Arsenal missed their fourth spot-kick when Bruno Guimaraes's effort was saved. Fleetwood's Conor Haughey converted their final penalty to seal the improbable victory.

Mikel Arteta, the Arsenal manager, had fielded a strong side, including Gyokeres and Havertz, signaling his intent to progress in the competition. This defeat marks a significant early exit for the London club, while Fleetwood celebrated a historic achievement in front of their home supporters.