Manchester City’s flawless start to the Premier League season came to an end in a 2-1 loss to Wolves, while Manchester United lost 1-0 at home to Crystal Palace on Saturday.
Arsenal reduced the gap to one point with a 4-0 win against Bournemouth, while Aston Villa smashed Brighton 6-1 to climb into the top four.
City had won the first six games of their title defense, and they are aiming to become the first team in English history to win four consecutive Premier League crowns.
Wolves, on the other hand, had only four points from their opening six games yet upset the champions at Molineux.
The home team took the lead thanks to Ruben Dias’ own goal, but City answered after the break with to Julian Alvarez’s free kick.
Wolves, on the other hand, were a constant threat on the counter-attack and were rewarded 25 minutes from time when Hwang Hee-Chan dashed home at the second attempt.
City’s defeat means Liverpool can go top should they end Tottenham’s unbeaten Premier League start under Ange Postecoglou in the 1615GMT kick off.
United have now lost four of their opening seven league games of the season to pile more pressure on Erik ten Hag.
Joachim Andersen’s stunning first-half volley separated the sides at Old Trafford.
United had won a League Cup meeting between the sides 3-0 in midweek.
But with Palace restored to full strength, the Red Devils suffered from a familiar lack of cutting edge up front as they laboured to get back into the game.
Defeat sees United slip to 10th in the table.