Australia demolished England by 64 runs at Lord's to go 2-0 ahead in the five-match one day series, although victory was soured by a bizarre dismissal controversy.
England was 141/3, chasing a challenging 310 to win, when Ben Stokes (10) was given out by the TV umpire for 'obstructing the field'.
The TV Umpire said he was comfortable giving the dismissal due to video which looked like Stokes had stopped pace bowler Mitchell Starc's shy at the stumps with his left glove while out of his crease.
It was harsh on Stokes as he seemed to be acting more in self-defence than trying to prevent being run out.
The Stokes decision, and another middle-order collapse, left England in trouble but a riled Morgan replied with an onslaught of big hitting before going out for 85 to end the match.
Australia captain Steve Smith said England batsman Ben Stokes was "blatantly out" and he did not regret appealing for his dismissal.
England skipper Eoin Morgan said he would have withdrawn the appeal.
Stokes is the first England batsman - and sixth overall - to be dismissed obstructing the field in a one-day international.