A controversial video assistant referee decision denied Liverpool a stoppage-time equaliser as they suffered a surprise Europa League loss to Toulouse.
Jarell Quansah's goal to make it 3-3 in the seventh minute of added time was ruled out after Alexis Mac Allister was judged to have handled the ball.
Quansah slammed in from close range to spark wild Liverpool celebrations and furious protestations from Toulouse before Bulgarian referee Georgi Kabakov was called to the VAR screen - having already appeared to point to the centre circle.
The ball had bounced off Mac Allister's chest into his upper arm much earlier in the move, which was ruled enough to disallow the goal.
Toulouse impressed for much of the match and went 2-0 up though strikes from Aron Donnum and Thijs Dallinga.
Liverpool pulled one back through a bizarre own goal from Cristian Casseres Jr, but Frank Magri restored the French side's two-goal advantage.
Substitute Diogo Jota then scored for Liverpool with two minutes of normal time left and they thought they had earned a point with virtually the final kick of the match, before VAR's intervention.
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This match becomes the latest to feature VAR-related controversy in a turbulent week, although while Liverpool were denied a point, they had been well below their best.
Toulouse are 14th in Ligue 1 - just one point above the relegation play-off places - and had lost 5-1 at Anfield in the reverse fixture earlier in this group.
But after withstanding heavy pressure they took the lead on 36 minutes through a mistake by Kostas Tsimikas. The Greek left-back was robbed by Donnum, who strode forward into the area and found the back of the net with a shot that deflected off Quansah.
Toulouse top scorer Dallinga bagged the second just before the hour, slamming into the bottom corner following a fine team move.
The hosts were rocked when a defensive mix-up saw a high cross bounce off Casseres' back and into his own goal, after he turned his back on the ball expecting a team-mate to head it away.
But they hit back immediately, Magri slamming in from close range after Caoimhin Kelleher palmed out a low cross.
Jota's powerful low strike set up a grandstand finish, but Toulouse held on for a famous win - with help from the officials.
Having won their three previous Europa League games, Liverpool are still well placed to qualify from Group E and need just one more victory from their final two pool matches to at least reach February's play-off round.
Aron Donnum scored his first goal of the season for Toulouse in his 17th match of the 2023-24 campaignMore follows.
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Toulouse
Formation 4-4-2
50RestesBooked at 90mins3Desler6Evans Costa2NicolaisenBooked at 90mins23Diarra15DønnumSubstituted forKamanziat 81'minutesBooked at 90mins8Sierro24Cásseres17Suazo9DallingaSubstituted forGelabertat 88'minutes20SchmidtBooked at 11minsSubstituted forMagriat 70'minutesSubstitutes
10Cissoko11Gelabert12Kamanzi13Mawissa Elebi14Begraoui19Magri21Bangré25Keben30Domínguez40LacombeLiverpool
Formation 4-3-3
62Kelleher2Gomez32Matip78Quansah21TsimikasSubstituted forSzoboszlaiat 45'minutes19Elliott3EndoBooked at 34minsSubstituted forAlexander-Arnoldat 45'minutes10Mac Allister50DoakSubstituted forSalahat 45'minutes18GakpoSubstituted forNúñezat 73'minutesBooked at 90mins7DíazSubstituted forJotaat 81'minutesSubstitutes
1Alisson5Konaté8Szoboszlai9Núñez11Salah20Jota44Chambers48Scanlon49Gordon53McConnell66Alexander-Arnold93MrozekLive Text
Match ends, Toulouse 3, Liverpool 2.
Second Half ends, Toulouse 3, Liverpool 2.
VAR Decision: No Goal Toulouse 3-2 Liverpool.
Rasmus Nicolaisen (Toulouse) is shown the yellow card.
GOAL OVERTURNED BY VAR: Jarell Quansah (Liverpool) scores but the goal is ruled out after a VAR review.
Hand ball by Alexis Mac Allister (Liverpool).
Guillaume Restes (Toulouse) is shown the yellow card.
Foul by Diogo Jota (Liverpool).
Cristian Cásseres (Toulouse) wins a free kick in the defensive half.
Attempt missed. Joe Gomez (Liverpool) right footed shot from outside the box misses to the left following a set piece situation.
Darwin Núñez (Liverpool) wins a free kick on the left wing.
Foul by Frank Magri (Toulouse).
Attempt missed. Diogo Jota (Liverpool) header from the centre of the box misses to the left. Assisted by Trent Alexander-Arnold with a cross following a set piece situation.
Warren Kamanzi (Toulouse) is shown the yellow card.
Darwin Núñez (Liverpool) is shown the yellow card.
Darwin Núñez (Liverpool) wins a free kick on the left wing.
Foul by Logan Costa (Toulouse).
Foul by Diogo Jota (Liverpool).
Cristian Cásseres (Toulouse) wins a free kick in the defensive half.
Foul by Alexis Mac Allister (Liverpool).
Player of the match
MagriFrank Magri
with an average of 6.88
Toulouse
Squad number19Player nameMagri
Squad number11Player nameGelabert
Squad number12Player nameKamanzi
Squad number9Player nameDallinga
Squad number15Player nameDønnum
Squad number6Player nameLogan Costa
Squad number23Player nameDiarra
Squad number20Player nameSchmidt
Squad number17Player nameSuazo
Squad number2Player nameNicolaisen
Squad number8Player nameSierro
Squad number24Player nameCásseres
Squad number3Player nameDesler
Squad number50Player nameRestes
Liverpool
Squad number7Player nameDíaz
Squad number20Player nameDiogo Jota
Squad number50Player nameDoak
Squad number19Player nameElliott
Squad number78Player nameQuansah
Squad number10Player nameMac Allister
Squad number2Player nameGomez
Squad number18Player nameGakpo
Squad number62Player nameKelleher
Squad number8Player nameSzoboszlai
Squad number11Player nameMohamed Salah
Squad number32Player nameMatip
Squad number3Player nameEndo
Squad number66Player nameAlexander-Arnold
Squad number9Player nameNúñez
Squad number21Player nameTsimikas
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