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The Reds were 1-0 up through a stunning Mo Salah strike but then completely fell apart at the back, conceding three goals in quick succession at the King Power Stadium.
James Maddison's free-kick was eventually given after a VAR review for the equaliser, with Roberto Firmino deemed to have played everyone onside.
And there was utter calamity for the second goal, where Schalke loanee Kabak and goalkeeper Alisson,fresh from two costly errors against Manchester City at Anfield last week, failed to communicate.
The horrendous mix up from a long ball over the top saw both players collide into one another like they were playing in Sunday League and allowed Vardy to nip in and score his eighth goal against the Premier League champions.
Harvey Barnes piled more misery on Jurgen Klopp's struggling side moments later as the Foxes ran riot and moved up to second in the table.
Harvey Barnes settles it :large_blue_circle:- Football on BT Sport (@btsportfootball) February 13, 2021
Leicester City leave Liverpool stunned with three goals in six minutes! pic.twitter.com/NDshsdHVOE
Shot of confidence at the moment, Liverpool find themselves in fourth position after a sixth defeat of the Premier League campaign so far.
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