The Reds appeared to be coasting towards three points after Philippe Coutinho broke the deadlock with an impressive long-range finish before Daniel Sturridge doubled Liverpool’s lead before half-time.
Wales international Joe Allen wasted a good chance to add a third before the midfielder had a goal ruled out for offside, with Sturridge also missing a promising opportunity.
Jurgen Klopp swapped Martin Skrtel for Dejan Lovren in the second half and Southampton striker Sadio Mane missed a penalty before the Senegal international halved the deficit.
Graziano Pelle levelled the game in the 83rd minute before Mane completed an incredible comeback victory for Ronald Koeman’s side.
Former Liverpool striker Owen was left in disbelief on Twitter after the Reds wasted a chance to put pressure on fourth-placed Manchester City.
2-0 up, disallowed goal and loads of chances. Can't believe Liverpool lost today. Just when a top 4 spot was looking a possible again.
— michael owen (@themichaelowen) March 20, 2016
Liverpool are in ninth place in the Premier League table.
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