Srdan Placsic scored the only goal in the 87th minute to give Sparta Prague a win over Liverpool at Tranmere and leave the Reds' qualification hopes in the balance.
After seeing his penalty saved by Danny Ward nine minutes earlier, Placsic scored with a fierce deflected shot to leave Sparta, Liverpool and Newcastle United all on three points from two matches.
Harry Wilson (pictured) had missed a penalty of his own for Liverpool in the first half.
Liverpool must beat PSV Eindhoven in their final Group A match and hope other results go in their favour to win the group or take one of the two best runners-up spots.
See: Liverpool report
Next fixtures
Liverpool: 3 Dec v Stoke (H) PL Cup
Sparta Prague: 30 Nov v PSV (A) PL Intl Cup