?
Joel, I'm thinking that the OP is trying to say that y is not an exponent.
The end result is the same, however.
There are at least four different ways to simplify the given expression (which the OP apparently mistyped as two different expressions).
Here's another way, that uses the fact that 4 is 2^2.
(22 x2 y−1)3(2 x−2 y)−3
26 x6 y−32−3 x6 y−3
262−3⋅x6x6⋅y−3y−3
2−3−6⋅1⋅1
2−9
5121