Everton fans taunted Liverpool supporters suffering a miserable evening at Goodison Park by mocking the Reds for slipping up in the Premier League title race.
Shock defeat in the Merseyside derby gives Liverpool a mountain to climb as Jurgen Klopp's side remained three points behind leaders Arsenal and only one point clear of Man City who have a game in-hand.
Liverpool's forwards were ineffective against cross-city rivals Everton, while the visitors defence was broken as Jarrad Branthwaite and Dominic Calvert-Lewin got on the scoresheet.
The Reds were previously unbeaten at the home of their rivals since 2010 when Everton similarly ran out two-nil victors on that occasion as well.
Since then it has been a happy stomping ground for Liverpool and Toffees fans were keen to make the most of the rare victory over their noisy neighbours.
Everton fans taunted Liverpool supporters suffering a miserable evening at Goodison Park
Liverpool lost ground in the Premier League title race after being dsmantled by Everton
Red boss Jurgen Klopp was frustrated with his side's performance after the match
Home supporters rubbed salts in Liverpool's wounds by emphatically chanting at Klopp and his underperforming players 'you lost the league at Goodison Park'.
That statement carries some weight with Liverpool now the outside-favourites amongst Arsenal and reigning champions Man City to win the English top-flight crown.
Meanwhile, victory carries Sean Dyche's side further clear of the league's relegation zone and all-but confirms their safety in the Premier League for next season.
Everton players celebrated a first win over Liverpool at Goodison Park in over a decade
Reds boss, Klopp, was realistic about his team's chances of winning the title this season following the defeat and admitted they are out of the running unless a late 'crisis' occurs elsewhere.
‘I really feel for the people,’ he said. ‘We never lost here (under Klopp) and it feels really different. I really apologise for that.
'We need a crisis at Manchester City and Arsenal and need to win football games.
'We are not safe (to qualify for) the Champions League as well so we should just play better football. You can see we are in a rush in front of goal,' he added.