After a 1-1 draw in regulation time, Preston emerged victorious in a marathon 16-15 shootout. Iwobi entered the match with 13 minutes remaining, while Calvin Bassey remained on the bench.
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Preston took the lead through Ryan Ledson in the 35th minute, but Fulham equalized when Reiss Nelson found the net in the 61st minute.
In the dramatic shootout, Iwobi calmly converted his penalty, but misses from Jorge Cuenca and Timothy Castagne proved costly for Fulham.
Meanwhile, at Goodison Park, Joe Aribo played a key role for Southampton as they also needed penalties to overcome Everton. After a 1-1 draw in regular time, Southampton edged Everton 6-5 in the shootout.
Aribo successfully scored his penalty, while Ashley Young missed for Everton, allowing James Bree to slot home the winning kick and send Southampton through to the next round.
Elsewhere, Manchester United delivered the most commanding performance of the night, thrashing Barnsley 7-0 at Old Trafford. Marcus Rashford, Alejandro Garnacho, and Christian Eriksen each scored twice, with Antony adding a seventh to complete the rout.
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