Ismaila Sarr struck twice in the first half and Yeremy Pino grabbed the third to condemn Arne Slot’s side to a sixth defeat in their last seven games in all competitions.
Slot fielded a weakened team as he prioritised Liverpool’s crucial games against Aston Villa, Real Madrid and Manchester City over the next two weeks.
But it was still another embarrassing result for Liverpool, coming hot on the heels of a 3-2 loss at Brentford on Saturday that further dented their spluttering Premier League title defence.
The Reds have lost their last four league matches and trail leaders Arsenal by seven points.
Assailed by criticism of their defensive failings and the poor form of blockbuster summer signings Alexander Isak and Florian Wirtz, Liverpool’s fall from grace has been stunning.
Isak, Wirtz, Mohamed Salah and Virgil van Dijk were all absent as Slot made 10 changes and fielded teenagers Kieran Morrison, Rio Ngumoha and Trey Nyoni.
It was a gamble that never looked like working and FA Cup holders Palace have now defeated Liverpool three times in the space of just 80 days.
They beat the Reds on penalties in the Community Shield and 2-1 in the Premier League.
Slot switched to a back three in a bid to revitalise Liverpool, but the move backfired when Joe Gomez’s mistake allowed Sarr to rifle home from 12 yards in the 41st minute.
Senegal winger Sarr increased Palace’s lead on the stroke of half-time, netting from Pino’s pass in front of the shell-shocked Kop.
Liverpool substitute Amara Nallo was sent off in the 79th minute for a professional foul on Justin Devenny and Pino slotted in Palace’s third in the 88th minute. (AFP)
