Reds fans were furious when Curtis Jones went down and the awarded penalty was cancelled out by VAR.
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However, former Brighton goalkeeper Sanchez appeared to get a touch on the ball.
Premier League Match Centre said: "The referee awarded a penalty to Liverpool for a foul by Sanchez on Jones.
“The VAR deemed that Sanchez won the ball and no foul was committed and recommended an on-field review.
“The referee overturned the original decision and play restarted with a drop ball."