High-energy-density nickel (Ni)-rich cathode materials are used in commercial lithium (Li)-ion batteries for electric vehicles, but they suffer from severe structural degradation upon cycling. Planar gliding and microcracking are seeds for fatal mechanical fracture, but their origin remains unclear. Herein, we show that “layer-by-layer delithiation” is activated at high voltages during the charge process when the “lattice collapse” (a characteristic high-voltage lattice evolution in Ni-rich cathodes) occurs. Layer-by-layer delithiation is evidenced by direct observation of the consecutive lattice collapse using in situ scanning transmission electron microscopy (STEM). The collapsing of the lattice initiates in the expanded planes and consecutively extends to the whole crystal. Localized strain will be induced at lattice-collapsing interface where planar gliding and intragranular microcracks are generated to release this strain. Our study reveals that layer-by-layer delithiation during lattice collapse is the fundamental origin of the mechanical instability in single-crystalline Ni-rich cathodes.