Souness said: "We have to admit that we were totally bashed up by a team who played very well on the day. The plan was to try and frustrate them and keep it tight - but it was game over after 10 minutes and there was no plan B.
They are always under pressure at Anfield to go at teams and we had a game plan to keep it tight and work on the fact that they do get nervous on their own pitch.
"But Liverpool were excellent, and frankly none of the reports we have had on them have indicated that they have played like that before. In fact 4-0 did not flatter them. We have played all the top teams and none of the others have done that to us.
"We have never said we are too good to go down but we have to believe we are good enough to stay up. I'd like to think we improved in the second half - unless Liverpool were taking it a bit easier by then. I'd prefer to believe the first option."