Three goals in last 13 minutes sink the Reds.
After the game Dalglish was rightfully perplexed as he reflected on snatching defeat from the jaws of victory on Wednesday night.
"I don't think anybody saw it coming.
"The way we started the game was fantastic, the passing and the movement - the only thing missing was in front of goal.
"They came in at 0-0 at half-time and it could have easily been 3-0 or 4-0.
"You didn't even see them getting a goal. Maybe the luck they never got at Bolton, they got it tonight with a last-minute winner.
"I don't have any answers. We dominated the game. We were really creative, thoughtful and professional but they have walked away with three points."
It was a horrible night all around as first the live streams for the Liverpool game were all broken or not functioning and then Everton compounded the misery by shooting a hole below the bows in our 10/1 shot for all teams to score and sinking the ship.
Liverpool sink to mid table mediocrity.
I'm not going to dwell on it because it's pretty clear what the problem is. A failure to convert chances has plagued the season for reds fans and it shows no sign of abating.
Once again Suarez hit the post, Downing missed a sitter, the newbie defender stored a spectacular overhead blah, blah, blah.
It's the same old story for Liverpool. The game should have been in the bag at half time and even worse they were still leading 0-2 with thirteen minutes to go.
Can you imagine the conversation if Hansen, Thompson and Lawrenson got together for a power breakfast this morning?
It's probably best not to think of that. It reminds me too much of a whiny Jonathon Davies when Wales are losing and a whiny Jonathon Davies when Wales are winning.
"He should have made that tackle, you can't go round the body or he'll drag you along. You have to go for the legs. If he'd gone for the tackle around the legs he'd have brought his man down. You have to go for the legs in that situation...."
It's not the same when you write it because you don't get the Welsh inflection but if you've heard him commentate you cringe every time he whines.
Let's leave it there. Without goalscorers Liverpool are a toothless tiger. Another goal would have put QPR out of their misery and quashed any sense of a comeback.
The blessing in disguise was that all of the feeds for the game were not working or abysmal quality. Who said you can watch sport for free with an internet connection?
They were wrong. Maybe you can watch some sport for free but when it's a packed night of football action an away trip to QPR does not top the bill and feeds on wizwig.tv were in short supply.
The best streaming service is sopcast without a doubt. I have a laptop with a HDMI connection and a wired internet connection next to the telly so you can usually get a good picture with sopcast and that is the feed you should look for on wizwig.tv if you are new to streaming.
So we ended up watching Man City V Chelsea and witnessed Tevez coming on as a substitute to turn the game around in a 20 minute cameo. Will they catch United? With performances like this one they will.
Whatever you may say about Tevez and his tantrums he is a wonderful player and showed it last night with sublime touches of skill that made Balotelli look like a bull in a china shop.
City turned the game around from going behind and eventually winning 2-1. Tevez could make the difference for them long term.
Our 10/1 sports bet was looking good all night and 7/8 teams scored so it was close but no cigar with Everton spoiling the party and piling on the misery.
Man City 2 Chelsea 1
Tottenham 1 Stoke City 1
Everton 0 Arsenal 1
QPR 3 Liverpool 2