An error by Liverpool goalkeeper Alisson has helped Leicester come from behind to earn a 3-1 win, with the champions losing three successive Premier League games for the first time since November 2014.
Liverpool were forced into another defensive reshuffle, due to Fabinho being injured, with January loan signing Ozan Kabak handed his debut. The 20-year-old's slip let Jamie Vardy in in the first half, only for the Leicester striker to hit the crossbar.
Trent Alexander-Arnold's hit the woodwork from a free-kick just after the interval, before Mohamed Salah finally broke the deadlock in the 68th minute, set up by a superb Roberto Firmino backwards flick.
After video review overturned a penalty awarded to Leicester, James Maddison equalised from a free-kick, before Alisson, who made two glaring errors in Liverpool's loss to Manchester City last weekend, cost his side again.
The Brazilian came racing out of his goal to meet a long ball over the top, but collided with Kabak and allowed Vardy to score in the 81st minute.
Harvey Barnes made sure of the win four minutes later to complete another miserable afternoon for Liverpool, who have now won just two of their last 10 league games.
With Manchester United not in action until Sunday, Leicester jumped to second in the standings, while Liverpool sit fourth, 10 points off leaders City after playing two games more.
"The second goal is a misunderstanding," Liverpool boss Juergen Klopp told BT Sport. "Alisson had a super game and then at that moment he came out, I didn't hear him shouting.
"On the pitch, we were the clear dominant side. We had chances and then we concede two goals."
Ilkay Gundogan has continued his brilliant form, as Premier League leaders Manchester City beat Tottenham Hotspur 3-0 to keep up their title bid in impressive fashion.
City are on 53 points, seven clear of second-placed Leicester City, with a game in hand.
And while 15 matches still remain, only a major slump in form would stop City from claiming their third title in four years.
"It is a big step for us, but of course, it is not over," says Spanish midfielder Rodri.
But Pep Guardiola's side are playing with a swagger, after winning 16 straight matches in all competitions, and German Gundogan has been central to that record-breaking run of form, with 11 goals in his last 12 Premier League outings.
Inventive and alert, Gundogan looks a different player to the steady, but unspectacular presence he had been prior to this season and his form means City are barely affected by the absence of their top midfielder - injured Kevin De Bruyne.
Jose Mourinho's Spurs show none of City's confidence, but they began brightly and went close to opening the scoring through a Harry Kane free kick, a curling effort over the wall that struck the upright.
But City went in front in the 23rd minute with a Rodri penalty, after Gundogan was tripped in the box by Pierre-Emile Hojbjerg.
City had missed three of their previous seven penalties this season and Spurs keeper Hugo Lloris could have saved Rodri's poorly placed kick, which squeezed over his hand.
Mourinho had a point in describing the limited contact on Gundogan as a "modern penalty", but once City had their noses in front, there was only one team going to win the encounter.
City turned on their dominant passing game and Spurs had little in response - either with their far-from-solid defence or an attack lacking craft.
Gundogan made it 2-0 five minutes after the interval, beating Hugo Lloris at the near post after good work from Raheem Sterling.
Then the former Borussia Dortmund midfielder, revelling in a more advanced midfield role, completed the win when he latched on to a superb long ball forward from goalkeeper Ederson, before putting Spurs defender Davinson Sanchez on the floor with some clever footwork and slotting home.
In the day's final fixture, goalkeeper Emiliano Martinez has pulled off a string of superb saves to grab an unlikely point for Aston Villa in a 0-0 draw away to a dominant Brighton.
The result extends the Seagulls' unbeaten run in the Premier League to six games.