Liverpool turned in a tepid performance at the Georgios Karaiskaki stadium slumping to a 1-0 defeat at the hands of Olympiakos.
Ieroklis Stoltdis struck with a header in the 17th minute to earn his sides first win against English opposition in 30 years.
Liverpool again displayed an inability to deal with set pieces, the goal resulting from a deflected Rivaldo free kick.
Manchester United exposed concentration lapses from Rafa Benitez’s team in their tie last week and Olympiakos exploited the defensive frailties again last night.
“As for the goal from another set piece, the ball deflected on its way into the box and that changed the direction of it,” said Benitez
“After that it made it difficult when Sami (Hyypia) jumped to challenge, and, when you go 1-0 down to an aggressive team, it makes it very hard.”
Liverpool we’re lucky not to concede more with the home side hitting both post and bar.
Former Internazionale player Grigorios Georgatos was back to his best dispensing quality passes from the left flank and Rivaldo was a constant threat from range, one of his shot’s flashing inches wide.
Harry Kewell was introduced at the expense of Stephen Warnock and Cisse replaced Josemi as Liverpool looked for an equaliser in the second half but to no avail.
Even the late dismissal of Anastasios Pantos eight minutes from time failed to ignite the reds as they played out their own Greek tragedy in Athens.
Olympiakos now top group A ahead of illustrious opposition making Liverpool’s next two matches against Deportivo crucial.
“Every team has a chance of qualifying so the home games are important now,” said Benitez.