AcademyYouth League match report: Liverpool beaten away at MSK Zilina in Round of 32
Kieran Morrison gave the Reds an early lead before their Slovakian hosts, backed by a sell-out crowd of more than 10,000 supporters, fought back to secure progression.
Fabian Bzdyl levelled towards the end of the first half and Frantisek Kosa netted what turned out to be the winner in the 65th minute.
Liverpool flew out of the blocks and, with four minutes on the clock, established a lead.
Josh Sonni-Lambie sprayed a pass out to the right for Morrison, who proceeded to drive past Marek Okal and slide a finish into the bottom left corner.
Zilina's response was strong and they got back on level terms 10 minutes before the break.
Bzdyl restored parity with a first-time strike past Kornel Misciur, after DJ Esdaille could only head clear a cross from Marco Bortoli to the edge of the box.
Will Wright worked an opening to restore the Reds' lead right on the stroke of half-time but could only hit the side-netting from a tight angle.
Both sides threatened early on in the second period. Trent Kone-Doherty dragged an effort just off target, while Kosa struck the post at the other end.
It was Zilina who converted the game's next opportunity to go 2-1 up and, ultimately, decide it.
On a counter-attack, Kosa was played through on goal by Nicolas Gucik and kept his composure in front of Misciur to roll the ball past the goalkeeper.
Morrison came closest to taking the tie to a penalty shootout, but the final whistle brought confirmation of Liverpool's elimination.
Team
Liverpool: Misciur, Ayman, Airoboma (Cisse, 70), Nallo (Clarke, 85), Esdaille, Murray-Holme (Abe, 67), Upton, Kone-Doherty, Sonni-Lambie, Morrison, W. Wright.
Unused subs: Bernard, M. Wright, O'Connor, Farkas, Bradshaw, Lee Forrester.