Below is a summary of the full article. Click here for the full version or go back to LFC Live.net
But parity was restored after Ismaila Sarr was tripped by Virgil van Dijk in the box and Jean-Philippe Mateta netted from the spot.
Jeremie Frimpong restored the Reds' lead with a chip over Dean Henderson that appeared to be a cross, but it took until the 77th minute for Palace to force penalties, when Sarr capitalized on some lax defending from Van Dijk and fired beyond Alisson.
That forced penalties, and Mohamed Salah, Alexis Mac Allister and Harvey Elliott missed their spot-kicks, handed Palace a 3-2 win.
Winners
Florian Wirtz sparkled on his competitive debut for the Reds and again demonstrated his balletic qualities in a no.10 role.
The summer signings in general had good days at Wembley, with Ekitike and Frimpong scoring and Milos Kerkez impressing.
Ryan Gravenberch missed the game altogether as he recently became a father, and his importance was underlined by the Reds' weak defensive display at times.
Another reliable talismanic figure of this side, Mohamed Salah, also looked far from his best and missed his penalty in the shootout.
Player ratings
Alisson (7).
An excellent first competitive start for the Reds, with several important contributions at both ends, including a goal in the 20th minute.
Took his goal brilliantly with some excellent center-forward play as he laid the ball off, collected it again and fired low and hard past Dean Henderson.
Sloppy on the ball, looked a little off the pace and missed his penalty kick in the shootout.
Harvey Elliott (N/A).
Andy Robertson (N/A).