The Reds were beaten 2-1 by Blackpool at Bloomfield Road. Blackpool took a 1-0 lead before Gerado Bruna equalised. The Argentinian then had a great chance to put the reserves in front but his weak penalty was easily saved before the Seasiders scored a late winner.
"We did really well against Blackburn on Monday night but overall I thought we were really poor and we lacked quality, intensity and ideas," said reserve team boss John McMahon.
"I thought the penalty for Blackpool's first goal was very harsh but I also thought the penalty we got was harsh so these things happen."