Maritzburg United, Orlando Pirates, Free State Stars, Mamelodi Sundowns and Polokwane City have all lost to teams that were seen as underdogs in the tournament, while Kaizer Chiefs needed an own goal against amateurs Tornado FC to go through to the last-16 stage.
The Magic, who currently play in the ABC Motsepe League in Cape Town, will visit National First Division outfit Maccabi at 19h30 at Dobsonville Stadium on Tuesday.
"I have got a bit of information about them," Masutha tells KickOff.com.
"Ja, I know that they are going to play with the likes of Nazier Jacobs in the midfield. Thando Mngomeni, also I heard he is still playing ... they are full of former NFD and PSL players. I feel everybody will want to be noticed. They will want to progress so that maybe they can draw another big team so they can be seen that they can still offer something. Obviously that is going to make this game very tough.
"Looking at what happened, the way Tornado played. I regard this last-32 as a round of underdogs. It is too full of upsets, so we are expecting a very, very tough match.
"You know for now you should expect everything. You never know how are they going to plan. I mean they saw us, they took a video of our game the time we played against Cape Umoya. So obviously they are going to have more information about us than us about them you see. So we just have to be prepared for anything. But it's going to be a very, very hard match."
He adds: "You know we'll always want to play. We will want to play all the time, so this gives us a chance that if we win, when the other teams are off, then we'll still be continuing. And that's all what we want for us to see, the players in a real game situation. Not only in training and during friendlies because those things are different."
Masutha says he has a full squad at his disposal.
"Ja, for now the team is ready, everyone is here. It's a chance for the players who didn't play against Umoya to show what is it that they have and what is it that they can offer you see."