The Reds recorded a 2-0 win over Pep Guardiola's flailing side, courtesy of a 12th minute goal from striker Cody Gakpo and a second half penalty from Mohamed Salah.
Tongue in cheek jeers of 'you're getting sacked in the morning' were aimed at a Guardiola by the Anfield faithful as the game slipped away for Man City.
But while the Spaniard smirked at the song and stuck up six fingers to signify his six Premier League titles from the touchline, and once again at the away end at full time, it's unlikely that smile will stay for long if the title keeps sleeping further away.
Arne Slot's side were in control for a large majority of the game, with Salah and Virgil van Dijk both missing numerous golden chances to strengthen the home side's lead further.
City, on the other hand, looked a far cry from the serial trophy winning side fans have come to know.
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They had just one shot in the first half compared to Liverpool's ten, and zero on goal, while Liverpool managed four.
There was a marked improvement in the second half, with the introduction of Jeremy Doku boosting their attacking threat, but City looked uncharacteristically unorganised and troubled at the back.
Sunday evening's defeat means they have now suffered their fourth Premier League loss in a row.
It means they have become the first defending Premier League champions to lose four consecutive matches in the competition.
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The last time they had that poor a run in the Premier League was in 2008, a spell that spanned from April to August.
That ran began before current owners City Football Group, led by Sheikh Mansour, took over.
Mansour and co completed their takeover in the month after that spell ended.
After years of dominance, Guardiola's side now haven't won a game of football since October 26 - a 1-0 win against rock bottom club Southampton - marking a run of seven matches.
As well as enduring a run of form not seen in almost 16 years, Man City now sit fifth in the table.
And there's a mind-blowing eleven points between them and Liverpool.
The Reds are nine points clear of second place Arsenal, too.
Chelsea and then Brighton take up the other slots in the top four.
Salah, who recently revealed he was 'more out than in' when it comes to signing a new deal, put any discourse surrounding his future to the side as he bagged two goal contributions on Sunday.
The Egyptian whipped in a delicious cross for Gakpo to pounce on at the far post in the first half, taking advantage of City's early defensive mishaps.
He then calmed Reds fans nerves in the second half, doubling their lead as he put the ball in the net from the spot in the 78th minute.
Luis Diaz had been deemed to have been tripped by Stefan Ortega inside City's box.
Salah then slotted home into the bottom corner, bouncing back from his spot kick miss in the Champions League against Real Madrid earlier this week in style.
It marks the most times a player has both scored and assisted in a Premier League game with a total of 36.
That levels former Manchester United and Everton star Wayne Rooney's feat.
With less than 10 minutes to go, Kevin De Bruyne had got himself round Caoimhin Kelleher, a scenario that normally end with the goal net rippling and the Belgian wheeling away in celebration.
But the midfielder ended up summing up City's current troubles, as the Irish goalkeeper managed to claw the ball back with assistance from Van Dijk.
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And with a substantial lead at the top of the table now heading into December, Liverpool won't want to be letting anything slip.
Their nine point lead is the biggest margin as leaders in the competition since the final day of the 2019/20 campaign - when they last won the title.