Defects induced by liquid-phase exfoliation of graphite using sonication were studied. It was shown that localized impact by cavitation shock waves can produce bulk ripplocations and various types of dislocations in graphite nanoplatelets. Formation of ripples is more pronounced in large aspect (length/width) ratio platelets or nanobelts. Quasi-periodical ripple systems were observed in many nanobelts after sonication. Mechanism of formation of ripples and dislocations during sonication was proposed. Surprisingly, fast high-temperature processing was found to anneal most of defects. This is consistent with our observations that defects associated with ripplocations are strongly localized and thus can be fast annealed.