In this high-octane clash at the Etihad, Pep Guardiola's side managed to pip the Reds 2-1 on a frantic night of football.
City closed the gap to just four points with the race for top two positions intensifying even further.
Here are the records broken.
How did the match pan out?
Sergio Aguero gave City the lead in the 40th minute with a rising left-footed strike from close range. Roberto Firmino equalized for the visitors with a simple header from Andrew Robertson's cross. Leroy Sane scored the decisive goal 18 minutes from time.
Liverpool suffer first Premier League defeat this season
Man City handed Liverpool their first defeat of the 2018-19 season in the EPL.
They had gone 20 games unbeaten prior to this defeat.
This was City's second victory in their last 12 matches against Liverpool across all competitions.
Brazilian Firmino scored his 10th goal of the season for Liverpool across all competitions.
He registered double figures for the fourth consecutive season for Liverpool.
Stat attack: Manchester City vs Liverpool
Argentine forward Sergio Aguero has scored in all seven of his EPL appearances for City against Liverpool at the Etihad.
The Reds have managed just a solitary win in their last nine league visits to the Etihad.
Liverpool have managed to lose 10 of their 25 matches in all competitions under manager Jurgen Klopp in January.