After an end-to-end start to the contest, Liverpool found themselves behind after 14 minutes, with Arsenal splitting open the Reds back-line to allow Kai Havertz to charge in behind.
Alisson managed to save the German's initial shot, but the rebound fell kindly to Bukayo Saka who finished with ease.
Arsenal continued to suffocate the Reds as the first-half continued, with the hosts looking by far the more likely to score next.
However, as the first half came to a close, Luis Diaz found himself in the box and managed to poke the ball towards the arm of Gabriel - who in a fitting tribute to Martin Odegaard's sweep in this season's reverse fixture, palmed it into his own net to hand Liverpool an equaliser.
Despite showing increasing signs of life after the restart, a cataclysmic mix-up at the back between Virgil van Dijk and Alisson - two of the world's best - would gift Gabriel Martinelli the easiest goal he'll ever score. Van Dijk let it bounce, Alisson missed his kick, and Martinelli passed it into an open net.
A joke of a goal, things would only get worse for Liverpool, seeing Ibrahima Konate sent off with just minutes to play before Leandro Trossard put the game to bed in injury time.
Here are our player ratings from the contest.
ALISSON (GK): 4
Unlucky to concede the opener after saving Kai Havertz's initial effort, only for the rebound to fall straight to Bukayo Saka. However, he played a bit too risky throughout, and paid the price when a mix-up with Van Dijk gifted Arsenal the lead. Then saw Trossard's effort slip through his legs in injury time to condemn the Reds to defeat.
TRENT ALEXANDER-ARNOLD (RB): 5
Endured a difficult start to the game at wide-right, clearly playing in a role marked out for Conor Bradley before tragic circumstances intervened. Found a lot of trouble early on against the lightning pace of Gabriel Martinelli before later being mugged of the ball in an incredibly dangerous position, only for Odegaard to fluff his effort. Subbed.
IBRAHIMA KONATE (CB): 6
Played Havertz onside for Arsenal's opener, seeing Liverpool's defence part like the Red Sea. Strengthened as the game went on, though, putting in an important challenge late in the first half to block Martinelli's swivelled shot, before producing a few vital interventions to quell Arsenal breaks after the restart. However, bookings would be his downfall, and he would accumulate his second yellow with three minutes to play, leaving Liverpool with 10 men.
VIRGIL VAN DIJK (CB): 4
Dragged out of position which led to Liverpool's defence being split open, allowing Havertz to run in behind to bring about the first goal. Looked uncharacteristically uncomfortable out there for much of the opening stages, then showed a complete lack of conviction for Arsenal's second, leading to a complete mix-up with Alisson which gifted the Gunners a second.
JOE GOMEZ (LB): 6
Did well to put Saka off when it looked like the winger had it on a plate to score. However, he was left walking on a tight rope for much of the game after earning himself an early booking for a challenge that probably didn't need to be made. Switched to right-back after Andy Robertson's introduction to play.
ALEXIS MAC ALLISTER (CM): 6
Slipped Cody Gakpo in behind for Liverpool's first major chance of the game, and on his part was largely defensively sound as Arsenal piled on the pressure in the first half, barring a couple midfield robberies. Put in a massive tackle on Havertz to stop the German as he converged on goal - could have so easily got that wrong.
RYAN GRAVENBERCH (CM): 5
Anonymous in the first half, struggling to get at all involved. However, dinked one over the top for Luis Diaz as the half came to a close, providing an assist of sorts for a very scrappy equaliser. Subbed.
CURTIS JONES (CM): 6
Not shy of effort, working to keep the ball more than any other Reds player on the pitch. End product wasn't always there, though.
CODY GAKPO (RW): 5
Liverpool's main attacking threat during the opening stages - having the first big chance of the game after being slotted in behind by Mac Allister, only to flash his cross-goal effort past the post. Tenacious off the ball and determined to gain possession. However, his overall impact on the game was admittedly limited. Subbed.
DIOGO JOTA (ST): 5
Completely absent in the first 45, but picked up a bit after the break. That said, nothing particularly of note.
LUIS DIAZ (LW): 6
Barely featured in the first half but came up with the all-important action as the first 45 came to a close, fighting for the ball and causing Liverpool's incredibly scrappy equaliser. Sheer persistence paying off, credit to him. Increasingly involved after the restart, flashing one past the post as that left-hand side became Liverpool's main route of attack.
HARVEY ELLIOTT (GRAVENBERCH, 58'): 6
Added another element of creativity to the midfield, although his contributions were largely hit or miss. Beaten down the right for the third as Liverpool lacked any right-sided defender.
DARWIN NUNEZ (GAKPO, 58'): 5
Struggled to really do damage after his introduction, then blasted a shot high and wide in a position where he really should have crossed. That's when his shoot-on-site policy doesn't go down too well. Booked for dissent.
ANDY ROBERTSON (ALEXANDER-ARNOLD, 58'): 6
Few decent deliveries into the box and not scared to put his foot in, but didn't prove much of a difference maker.
THIAGO ALCANTARA (GOMEZ, 85'): N/A
Thiago Alcantara played for Liverpool. This is not a drill.