On a wet and windy night on the north-west coast of England, a League Two side sensationally knocked the Premier League champions out of the Carabao Cup. But this is not just a fairytale story of giant-slaying: Fleetwood Town and Arsenal have an unlikely history that stretches back long before Tuesday night’s game.

Arsenal played at their iconic Highbury stadium until 2006, and Fleetwood’s ground has the same title, being named after Highbury Avenue, the adjoining street.

Fleetwood also play in red shirts with white sleeves in the style of the classic Arsenal kit. Nobody is exactly sure why, but according to Ray Curtis, a barman in the town’s King’s Arms: “Fleetwood’s first ever kit, the home kit, was given to them by Arsenal.”

And in the 2000s, not long after Patrick Vieira captained Arsenal, Fleetwood boasted a namesake star: a Brazilian striker called Magno Vieira.

At the 5,300-capacity Highbury on Wednesday morning, the floodlights that Fleetwood had hired for the occasion were being packed away. “It’s back to reality, back to being a League Two team, that’s our normal,” said Zsofia Wright, the ticket office and retail manager.

On Tuesday, the excitement and anticipation started early. “We started getting what team had turned up, who’d flown in, and the whispers started, and it’s like, ‘oh, they’ve gone quite strong’,” Wright said.

“So we were all planning to just enjoy the occasion. And then obviously, we went 1-0 up and everyone was kind of looking at each other, like this isn’t supposed to be happening.”

She said it was back to reality when Arsenal equalised except that “the clock kept on going and the score didn’t change”.

Wright said everyone was on the pitch after the dramatic penalty shootout that saw the Premier League champions and Champions League finalists ousted from the competition. The next stop for players, fans and management was the stadium bar.

“Just incredible,” Wright said. “We were here till about half one last night. It was brilliant, amazing.”

“The atmosphere was crazy,” said Chris Newman, 33, who was at the match with his son. He returned to the club shop on Wednesday to pick up two souvenir programmes. “Everything happened so quick,” he said. “I just didn’t expect it at all.”

The shop has done a roaring trade over the past 36 hours, with half-and-half Fleetwood and Arsenal scarves proving especially popular. One buyer with a London accent said: “I’m a Spurs fan, it’s brilliant.”

Wright said the town was abuzz the morning after: “Bars, pubs that are struggling, they were open till God knows what time yesterday. We just hope it can continue throughout the season, just hope that attendances start to pick up, and get consistency back again through the gates.”

The club’s nicknames – the Cod Army, the Fishermen, the Cods and the Trawlermen – all derive from the Lancashire town’s fishing industry.

Sharon Brooks, who was visiting a fishmonger by the harbour, said: “We thought it’d be three, four or five nil, but they did so well to get a draw and then win on penalties, and five brilliant penalties. It’s nice for a town like Fleetwood, and [against the] Premier League winners last season, they just surprised you didn’t they?”

Her 12-year-old son, Ryan, who is an Arsenal fan, said: “Even though I wanted [Arsenal] to win it, I’m pleased for them.”

In the King’s Arms, everyone was eagerly awaiting Wednesday night’s draw, which will decide who Fleetwood plays next.

Donald Maclean, who missed the game because he was on duty at a nursing home, said: “I saw the goals this morning and I was delighted, over the moon, imagine Fleetwood taking down the Gunners! Never been heard of before, so yes, we’re all delighted about it. Brilliant!”

The Cod Army’s victory has delighted fans partly because it was so unexpected – Fleetwood sit 84 places below Arsenal in the football league pyramid.

Michael Houton said he had thought the result impossible “because Arsenal shouldn’t have got beaten should they? Not against Fleetwood.”

Paul Dagger was so pessimistic about his team’s chances that he had staked £200 at half-time on Arsenal to win at odds of 10/7. “Gyökeres [of Arsenal] scored within five minutes of the start,” he said. “I thought, oh here we go, money’s coming in now. You live and learn.”

Fleetwood fans hope it will be the start of something bigger than just a victory for lovers of the game. “The town needs it,” Dagger said. “As you can see, it’s full of charity shops and vape shops.”

Garry Gill, a retired crane operator, said: “I am a Fleetwood fan and I think it’s fantastic for the town. It’s going to bring coin.

“If they play with the determination they did last night, any team that comes to play now is going to be frightened. And normally, that’s not the case, they think it’s an easy win.”

Jim Buckley said: “It’s magic. We’re a Mickey Mouse town of 25,000 people, there’s no train station. I mean at the Emirates, they can fit three towns the size of this town in there.”

He was not far out – Arsenal’s stadium can hold 60,000 fans.

The drinkers in the King’s Arms said the travelling Arsenal fans had had a good day out despite the embarrasing defeat.

Dagger said: “Two pound twenty a pint in here, two pound fifty a pint over the way. They couldn’t believe it, they were going, facking ‘ell, it’s eight quid where we are.”

Back near the harbour, at the Shark Chippy, there was a lunchtime rush. Dishing up cod and chips, Bethany Taylor said she lived near the ground and could tell the result from the roar of the crowd and the flares. “It was good, brilliant,” she added. “We weren’t expecting it.”

“It’s an incredible result isn’t it?” said her colleague Louisa Smith.

But do they think Fleetwood can lift the Carabao Cup? “It’d be a struggle, but hopefully they will,” Smith said. “We wish them luck.”