Lyon added to Liverpool's miserable start to the season by scoring a last minute winner in the 2-1 win at Anfield. The Reds have now lost four consecutive games for the first time sine 1987.
Yossi Benayoun had given them a scarcely merited lead just before the break after captain Steven Gerrard had been substituted as a precautionary measure.
But Lyon proved a useful outfit and it was no surprise when they took advantage of the hosts defensive deficiencies on 72 minutes.
Liverpool failed to clear a corner and Pepe Reina twice saved from Jeremy Toulalan and Jean Makoun before Maxime Gonalons finally headed home.
Even the Kop were failing to raise the Liverpool spirits and on the stroke of full time a quick break saw Sidney Govou set up Cesar Delgado at the far post to tap home.
Liverpool now face a huge task to qualify for the final stages of the Champions League and then there is the little matter of Manchester United at the weekend.
