In round three world number two Selby had to produce a moment of brilliance to stay in it, clearing with a 136 in a deciding-frame thriller against Dechawat Poomjaeng.
But he could not beat his fellow Englishman Lisowski, losing 4-3.
World number one Judd Trump came through his opening three matches with ease, beating Martin O'Donnell 4-1, Michael Wild 4-0 and Aditya Mehta 4-2.
Tom Ford ousted Matthew Stevens 4-1 in their fourth-round clash, notable for the Englishman’s 147 break.
The top half of the draw plays three rounds on Friday, and the bottom half of the draw does likewise on Saturday, with the 16 remaining players competing for the honours in the final four rounds on Sunday.
John Higgins, Shaun Murphy, Mark Williams, Neil Robertson and Mark Allen are also competing in the event.
Round Two Results:
Mark Selby 4-0 Danail Tugov
Dechawat Poomjaeng 4-0 Ben Harrison
Christopher Norbury 4-0 Konstantinos Mavroforos
Jack Lisowski 4-2 Michael Wasley
Daniel Wells 4-3 Robbie Williams
Matthew Stevens 4-3 Allan Taylor
Tom Ford 4-1 John Parkin
Robert Milkins 4-0 Stanislav Hadjipopov
Thepchaiya Un-Nooh 4-0 Dimitris Economou
Tony Drago 4-3 David Grace
John Astley 4-2 Jeff Cundy
Alan McManus 4-2 Justin Astley
Mark Davis 4-3 Kacper Filipiak
Luca Brecel 4-1 Mitchell Mann
Paul Davison 4-0 Zhang Anda
Judd Trump 4-1 Martin O'Donnell
Joe Perry 4-0 Adam Duffy
Nigel Bond 4-3 Pankaj Advani
Dave Harold 4-3 Adam Wicheard
Kurt Maflin 4-0 Venislav Daskalov
Elliot Slessor 4-2 Ryan Day
Michael Wild w/o Marco Fu
Steve Davis 4-0 Michael Leslie
Andrew Higginson 4-0 Alain van der Steen
Jimmy Robertson 4-2 Thanawat Tirapongpaiboon
Andrew Norman 4-0 Garry Steele
Scott Donaldson w/o Robin Hull
Anthony McGill 4-1 Jonatan Mabey
Aditya Mehta 4-1 Michael White
Fergal O'Brien 4-0 Nikola Kemilev
Martin Gould 4-0 Liu Chuang
Barry Hawkins 4-1 Liam Monk
Round Three Results:
Mark Selby 4-3 Dechawat Poomjaeng
Jack Lisowski 4-1 Chris Norbury
Matthew Stevens 4-2 Daniel Wells
Tom Ford 4-2 Robert Milkins
Thepchaiya Un-Nooh 4-2 Tony Drago
Alan McManus 4-1 John Astley
Mark Davis 4-0 Luca Brecel
Paul Davison 4-2 Joe Perry
Dave Harold 4-3 Nigel Bond
Kurt Maflin 4-0 Elliot Slessor
Judd Trump 4-0 Michael Wild
Aditya Mehta 4-2 Steve Davis
Andrew Higginson 4-0 Jimmy Robertson
Andrew Norman 4-2 Scott Donaldson
Anthony McGill 4-2 Fergal O'Brien
Barry Hawkins 4-0 Martin Gould
Round Four Results:
Jack Lisowski 4-3 Mark Selby
Tom Ford 4-1 Matthew Stevens
Thepchaiya Un-Nooh 4-1 Alan McManus
Mark Davis 4-2 Paul Davison
Dave Harold 4-3 Kurt Maflin
Judd Trump 4-2 Aditya Mehta
Andrew Higginson 4-3 Andrew Norman
Anthony McGill 4-0 Barry Hawkins
