The newly promoted side have one win from their first three games back in the Premier League, currently sitting in 13th.
Two goals from Alexander Isak within the first nine minutes of the game was enough to secure a first win for Andoni Iraola and his Liverpool side.
Speaking to Sky Sports after the game, however, Ipswich boss O’Neil insisted that things could have been very different if it wasn’t for ‘big mistakes.
"Proud of the group. I thought we were excellent. Two mistakes in the first 10 minutes made it very difficult, but I think we were probably the better side for large parts after that. More shots and some really good chances,” he said.
"Obviously, the mistakes were big; we were punished heavily by world-class players, but then an excellent response and we gave it our best, which the fans appreciated, as you could see from their reaction at the end, but we are here for points, so next week we have to make sure we take some.
"There were no issues out there for us tactically. Similar to Manchester United, but at Manchester United we lost our way and moved away from the game plan, but today the lads were able to get straight back down to business.
"Second half especially, I thought we were excellent with the ball and cut through them many times. We didn't quite find that moment of quality to get us back in it, but of course this is one of the most extreme tests, and we came up a little short in terms of points. But in terms of what I asked for the players, I thought they were very very good."