Rafa Benitez was left to rue "bad mistakes" after Fernando Torres rescued his side from the jaws of defeat with a last-gasp equaliser in a lively 2-2 draw with Tottenham at Anfield.
The Spanish hitman headed home in the final seconds of a match which Martin Jol's struggling side looked to have sealed through Robbie Keane's brace.
Liverpool should have had the match won by half-time but inexplicably allowed Spurs back in the game and then nearly snatched an unlikely victory.
Benitez said: "We were controlling the game and creating chances but we made big mistakes which at the end have cost us all three points.
"In the first half we were a much better side than Tottenham and should have had the game won by half time - it could easily have been two or three nil.
"But we made an error in defence and next thing we are going into the break on level terms.
"I can't really explain this because we have defended so well at home this season, but we have to do better than that."
The Reds boss made five changes from the side that crashed so dismally to Marseille in midweek with Javier Mascherano, Andriy Voronin, Alvaro Arbeloa, Jermaine Pennant and John Arne Riise all returning.
And his tinkering looked to have paid dividends when Liverpool's first meaningful attack brought the opening goal.Steven Gerrard made a marauding run into the danger area before being tugged down on the edge of the box.
The skipper's wickedly whipped in free-kick was then fumbled by hapless England number one Paul Robinson and he watched Voronin nip in and score.
The Reds, so poor in midweek, came agonisingly close to doubling their lead on 30 minutes when another superb Gerrard free-kick struck the face of the post with Robinson at full stretch.
Then, on 33 minutes, Voronin should have added to his tally on the end of an electric Liverpool attack, but he chose to pass to Gerrard with the goal at his mercy and Michael Dawson saved a certain goal with a desperate last-minute lunge.
But Liverpool were made to curse their missed chances when Tottenham equalised through Robbie Keane after a rare foray forward.
The Republic of Ireland striker latched onto a Dimitar Berbatov flick from a hopeful punt forward and coolly lifted the ball over the advancing Jose Reina.
Benitez's men were still reeling when Keane struck another hammer blow barely two minutes after the break.
Again, Berbatov beat Sami Hyypia to a long ball and headed on for Keane to loop it over Reina and in off the bar.
Spurs looked a different side to the one that capitulated in the first half against Aston Villa last Monday and Jermaine Jenas nearly stunned Anfield again minutes later but fired wired.
Benitez reacted by bringing on Ryan Babel for Arbeloa and Liverpool came close to equalising on 60 minutes but Gerrard's curling shot sailed over the bar.
With 15 minutes remaining the under fire Robinson almost gifted Voronin another goal but Dawson came to rescue the keeper after his fumble.
But the England stopper made amends a minute later with a smart save when Mascherano looked to have sneaked it in at the near post.
The Argentinian had another go with five minutes left, smashing a 30-yard blockbuster just wide of Robinson's top corner.
Tottenham were furious in the final minutes when Reina looked to have scythed down Gareth Bale but the referee gave the free-kick against the defender.
But his compatriot Torres had the last laugh with seconds remaining when he rose first to head home a Steve Finnan cross.
Spurs manager Jol thought Totteham deserved to win. He said: "We knew this would be a tough game because Liverpool were keen to get back to winning ways after their defeat to Marseille.
"They made a good start and got the goal, but after Gerrard hit the post we started to get back into the game and showed great spirit.
"Then we scored two great goals through Robbie Keane and played some good football after that.
"The decision on Gareth Bale was disappointing because it's ended up costing us all three points."