Liverpool recorded their first away win over us since 2000 to heap more misery on us. Emmanuel Frimpong was sent off and we lost injured centre-back Laurent Koscielny in a 2-0 defeat at Emirates Stadium.
Samir Nasri impressed but our luck was out after Aaron Ramsey's own goal and a last-minute strike from substitute Luis Suarez handed victory to the visitors.
Arsene Wenger - who now has half his first-choice team out because of suspension or injury - must regroup his squad for next week's crucial Champions League play-off second leg in Udinese and the small matter of a trip to Manchester United.
Nasri - whose £22million move to City is, according to reports on French TV, said to have broken down - did not applaud the crowd as the teams came out of the tunnel, and was then jeered by some sections of the Emirates Stadium faithful when his name was announced.
Liverpool showed early intent, as Dirk Kuyt - who netted a late penalty deep into stoppage time to earn a 1-1 draw here last season - drilled a low, angled drive goalwards.
New captain Robin van Persie looked lively as he nicked the ball out on the right channel and floated over a cross which Martin Kelly stabbed behind for a corner.
On eight minutes, Frimpong was cautioned for squaring up to Jordan Henderson as the Liverpool midfielder tried to take a quick throw-in.
Koscielny added to Wenger's defensive problems when he pulled up with what looked like a lower back injury on 14 minutes and had to be replaced by youngster Ignasi Miquel, the Spaniard making his Premier League debut.
Liverpool almost took the lead on 20 minutes when Andy Carroll's towering header at the far post brought a brilliant save from Wojciech Szczesny.
The visitors were in full flight now, with Henderson sending a tame header straight at Chesney following another quick break down the left.
Charlie Adam then tried an audacious chip from the halfway line, which had Szczesny backpedalling, but flew over the bar.
We finally mounted a meaningful attack after 30 minutes when Frimpong's low drive from 20 yards was pushed wide by Jose Reina.
Nasri then showed what we would be missing when he picked up the ball in his own half, dashed forwards and turned Liverpool inside out before unleashing a 25-yard strike which curled past the post.
As the Heavens opened for the start of the second half, Liverpool continued to frustrate us.
The visitors broke quickly into our box on 55 minutes, with Carroll laying the ball back to Kelly - and his snapshot struck the outside of the post.
We eventually started to up the pressure, but lacked a decisive pass in the final third.
Andrey Arshavin turned Kelly and fed van Persie at the near post, but his goalbound flick was kicked behind by Reina.
With 20 minutes left, we were reduced to 10 men when Frimpong was shown a second yellow card when he left his foot up in a 50/50 challenge with Lucas, right in front of the referee.
Liverpool snatched a fortunate lead on 78 minutes when as Suarez darted into the six-yard box, Miquel's clearance cannoned off Ramsey's chest and back over the keeper into the net.
A miserable afternoon was compounded in the final minute when Suarez tapped in from close range following a quick counter-attack.