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Eddie Nketiah struck with virtually the last kick of an enthralling encounter at Selhurst Park to give Crystal Palace a deserved victory and end Premier League leaders Liverpool's five-match winning start to the season.
Italian Federico Chiesa's 87th-minute equaliser looked like to have salvaged a point the champions' dismal display barely merited.
Ismaila Sarr had given Palace an early lead but just as it looked like they would pay the price for wasting a host of chances, Nketiah pounced at the far post in the seventh minute of added time to lift them up to second in the table.
Palace were outstanding in stretching their unbeaten run in all competitions to 18 games - equalling a club record set back in 1969 - tormenting Liverpool's rocky rearguard throughout, but failing to make their superiority pay.
Sarr's ninth-minute goal, bundled home after Liverpool failed to clear a corner, was scant reward for Palace's domination in the first half, in which only the brilliance of keeper Alisson and the woodwork spared the champions further punishment.
Brazilian Alisson saved superbly from Yeremy Pino, Daniel Munoz and Jean-Philippe Mateta, with the French forward also hitting the woodwork with a superb effort at the end of a flowing move.
Liverpool, as they had to do, improved after the break with Palace keeper Dean Henderson - who turned Ryan Gravenberch's powerful drive on to the post - denying Florian Wirtz from point-blank range.
Record £125m signing Alexander Isak, making his full Premier League debut for the Reds, also shot wide with only Henderson to beat as the visitors built up pressure.
Liverpool's habit of striking late surfaced again as substitute Chiesa pounced from close range, but Nketiah provided the late twist Arne Slot's side have inflicted on others this season.
It was dramatic as Gravenberch's foot kept him just onside after a video assistant referee (VAR) check.
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