The Reds could have given away a penalty when the ball appeared to strike Trent Alexander-Arnold in the hand.
But the referee played on, allowing Jurgen Klopp's side to counter.
And they would capitalise with a quite incredible strike from Fabinho.
The Brazilian midfielder took aim from 25 yards and rocketed an effort past Claudio Bravo.
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Watch it below:
What a hit son. What a hit.
Following the goal, Man City players crowded around the referee as they made their feelings clear.
But the goal was allowed to stand as VAR ruled there not to be a handball by Alexander-Arnold.
And watch the VAR call below...
Liverpool made it 2-0 shortly after through Mohamed Salah.
Alexander-Arnold started the move off by playing an incredible cross-field pass with his left-foot.
Andy Robertson then crossed it in and the Egyptian forward headed home to double his side's lead.
Another lovely goal from Liverpool.
But there have been some complaints that the goal was offside.
We saw VAR check a border-line call in Tottenham vs Sheffield United yesterday. It took 3 minutes 47 seconds to rule John Lundstram offside from what was the smallest of margins.
Salah looked he may have been offside in the build-up to his goal but there was no such check this time and the goal was allowed to stand.
That does look very tight. A replay was later showed on in the half which proved Salah was indeed onside.News Now - Sport News