Carbon nanotube (CNT) fibers have been extensively investigated along the longitudinal direction and are well-known for their high axial tensile strength and modulus. However, after being manufactured into textiles or composites, these fibers are usually subjected to transverse loading during their normal service life. Deformation and failure of CNT fibers induced by external loads in the transverse direction lack examination. This study integrated single-fiber quasi-static and dynamic transverse loading techniques with scanning electron microscopy (SEM) and high-speed imaging, respectively. An extreme condition was considered as the indenter was a sharp razor blade. Failure behavior of single CNT fibers transversely loaded by the blade at different velocities was visualized, and axial mechanical response of these fibers was measured. The fracture surface of CNT fibers was examined by SEM. Additional experimental investigations were performed on commercialized two organic (aramid and ultrahigh molecular weight polyethylene) and two inorganic (ceramic and glass) fibers. It is revealed that CNT fibers experienced initial contact with the blade, followed by partial incision, and ultimately tensile failure. Furthermore, the energy dissipation and dispersion capabilities of CNT fibers per unit mass were demonstrated to surpass that of commercialized high-performance fibers during extreme transverse loading. As the loading rate increased, the energy dissipation of CNT fibers was further improved by 2.1 times. Such high performance of CNT fibers in resisting extreme transverse loading was presumably attributed to the high hardness, strength, and stiffness of CNTs in the transverse direction and weak intermolecular interactions in the axial direction. This study expands material characterization of CNT fibers in the transverse direction and reveals the fundamental failure mechanism of CNT fibers in the harsh environment, which is deemed useful to develop the fiber-scale model for textiles and composites.