City dropped points 24 hours earlier after a 1-1 draw at Southampton.
It meant Jurgen Klopp’s side had the opportunity to within nine points of the league leaders with a game in hand if they could beat Palace.
And after the opening 40 minutes at Selhurst Park, it looked as though it was going to be a comfortable afternoon for the Reds. They led 2-0 thanks to goals from Virgil van Dijk and Alex Oxlade-Chamberlain and were swarming all over the home side.
However, the entire match appeared to change in the few minutes before half time.
Palace ended the first 45 minutes squandering a few chances and would have gone into the break buoyed for a promising spell. And they picked up where they left off in the second half, creating numerous opportunities to pull a goal back.
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The only surprise was that it took 10 minutes for them to finally score when Odsonne Edouard tapped into an empty net after Jean-Philippe Mateta broke through on goal.
Palace went in search of an equaliser.
However, with minutes remaining, the contest was over in controversial circumstances.
Diogo Jota went down under the challenge of goalkeeper Vicente Guaita and, despite referee Kevin Friend waving away the protests, the penalty was awarded after a VAR check.
While arguments over the award will rage on, we wanted to focus on the pass that led to the penalty – a pass from Trent Alexander-Arnold.
The Liverpool right-back picked up the ball deep inside his own half, looked off and played an incredible 70 yard pass into the path of Jota.
The conversation will be about what happened next but it’s important not to forget the insane ball from Trent.
It even made Jamie Carragher go ‘wow’ on co-commentary duty.
VIDEO: Alexander-Arnold’s ridiculous pass that led to penalty
After two assists against Arsenal on Thursday which helped Liverpool reach the Carabao Cup final, Alexander-Arnold has had quite a week.