Arsenal's 3-1 victory over the leaders on Sunday was vital as Gabriel Martinelli punished Liverpool keeper Alisson Becker's blunder to blow open the Premier League title race.
To the jubilant cheers of the Arsenal supporters crammed into the boisterous Emirates Stadium, Martinelli scored after Alisson mishandled his clearance entirely in the second half.
Bukayo Saka gave Mikel Arteta's team the lead early on, but Gabriel Magalhaes's bizarre own goal gave Liverpool an equalizer late in the first half.
Leandro Trossard scored Arsenal's third goal in stoppage time to seal the victory. The goal came after Ibrahima Konate, a Liverpool defender, was sent off in the last moments of play.
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After 23 games apiece, Arsenal's crucial win put them two points behind Liverpool in second place.
It was Liverpool's first home loss across all competitions since their Premier League loss to Tottenham in September, just across the border in north London.
The crushing loss for Liverpool also motivated champions Manchester City, who visit Brentford on Monday.
Although City trails Liverpool by five points, they still have two games remaining and will take the lead if they win both.
Just one month ago, Liverpool triumphed at the Emirates, defeating Arsenal 2-0 in the FA Cup third round, partly because of several crucial errors made by the Gunners.
Just before Christmas, the teams also drew 1-1 at Anfield in the Premier League after Arsenal blew an early lead.
Arsenal's victory over Liverpool was their first since Klopp announced his long-term departure on January 26. Had they lost, Arsenal would have fallen eight points short of the leaders.
Arsenal has made a significant declaration of intent as they pursue their first championship since 2004. After losing to City late in the season, Arsenal has made a substantial declaration of intent.
Without Gabriel Jesus, who has been sidelined frequently due to knee issues, Arsenal finally displayed the cutting edge needed to win titles this week in practice.
When Saka scored in the 14th minute, the Arsenal winger began a frenzy in the stands.
After Kai Havertz and Martin Odegaard exchanged passes, a massive hole in Liverpool's defense was created. Allison Becker stopped the German's hesitant shot, but Saka was there to score from ten yards out on the rebound.
