Paraguay suffered a 4-1 mauling against Peru in Asuncion to derail its qualification campaign.
Paraguay took an early lead through Cristian Riveros after nine minutes but Peru hit back with second-half goals from Christian Ramos, Edison Flores, Christian Cueva and an Edgar Benitez own goal to run out convincing winner.
Paraguay coach Francisco Arce attempted to put a positive spin on his team's loss. "We're still in the race to qualify," Arce said. "We don't think we're dead, we just need to pick ourselves up and get on with it," he added.
Paraguay, which is two points outside the qualifying positions, faces Bolivia away in its next game.
Venezuela, meanwhile, scored its first win of the qualifiers with a 5-0 thrashing at home to Bolivia, with Josef Martinez scoring a hattrick.
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