Liverpool handed Manchester City their first Premier League defeat this season as the rampant Reds won 4-3 against the shell-shocked leaders to show they can thrive without Philippe Coutinho.
It was a rare chastening experience this season for City, but shouldn't prove damaging to their title bid as they remain 15 points clear of second-placed Manchester United, who host Stoke on Monday.
Liverpool go above Chelsea into third place after extending their unbeaten run to 18 matches in all competitions.
PREMIER LEAGUE
Sunday's results
AFC Bournemouth 2-1 Arsenal
Liverpool 4-3 Manchester City
Saturday's results
Chelsea 0 - 0 Leicester City
Crystal Palace 1 - 0 Burnley
Huddersfield Town 1 - 4 West Ham United
Newcastle United 1 - 1 Swansea City
Watford 2 - 2 Southampton
West Bromwich Albion 2 - 0 Brighton & Hove Albion
Tottenham Hotspur 4-0 Everton
City swaggered into Anfield unbeaten in the top flight in 30 matches and widely heralded as champions-elect amid talk that they could go throughout the entire league campaign without losing.
But 90 minutes later, Pep Guardiola's side were licking their wounds after their first domestic defeat since the FA Cup semi-final against Arsenal last season.
They were beaten at their own game as Jurgen Klopp's team delivered a scintillating display that allayed fears they may struggle follow the sale of Brazil forward Coutinho to Barcelona.
In their first match following Coutinho's exit, Liverpool were on fire from the moment Alex Oxlade-Chamberlain gave them an early lead.
Leroy Sane equalised before half-time, but Roberto Firmino, Sadio Mane and Mohamed Salah destroyed City after the break with three goals in nine minutes.
Late goals from Bernardo Silva and Ilkay Gundogan made the final score closer than City deserved.
Meanwhile, Arsenal lost further ground on the Premier League's top four after struggling Bournemouth came from behind to beat them 2-1 on Sunday.
After Hector Bellerin fired through Asmir Begovic to open the scoring for Arsenal in the 52nd minute, Callum Wilson and Jordon Ibe scored within five second-half minutes to turn the game on its head.
First Wilson converted Ryan Fraser's teasing cross to restore parity in the 70th minute before Ibe fired home a second having been teed up by the scorer of Bournemouth's first.
Alexis Sanchez, heavily linked with an exit from the Emirates, was left out of Arsenal's squad with manager Arsene Wenger saying before the game that a decision on his future was "imminent".
Having won just one of their last five Premier League matches, Arsenal remain sixth with 39 points -- five behind rivals Tottenham Hotspur in fifth. Bournemouth, meanwhile, climb to 13th but remain just four points above the bottom three.
"It's a fantastic win because we need to pick up our home form," man-of-the-match Wilson told Sky Sports.
"The fans were flat so we needed to get them back in the game and a goal against a big team got them on their feet and then we added a second.
"It's a massive lift. Those points lift us further away from the bottom three."