Neil Warnock slammed referee Michael Jones's decision not to send Marvin Elliott off for a horror tackle after Bristol City won the play-off semi-final first leg 2-1 at Selhurst Park.
Ben Watson looked to have ensured Palace would take a 1-1 draw to Ashton Gate for the second leg on Tuesday night after his penalty three minutes from time cancelled out Louis Carey's earlier effort.
However, deep into injury-time, David Noble fired into the top corner from 30 yards to leave Palace stunned.
Seven minutes before the end Elliott was involved in a collision with Danny Butterfield where the midfielder appeared to leave his leg in late and high, but only received a yellow card, a decision that infuriated Warnock.
"I'm stood 25 yards off, the same as the referee, and if you can't see that's a red card there's something wrong with the game of football," he said.
"That's a straight red, you could see the reaction of Elliot that he thought it was a red, he thought he had finished the season.
"It's an horrific challenge. I don't understand. You get booked for kicking the ball away but we've got to be better at spotting horrible tackles like that.
"How he got away with a yellow card I don't know, we should have been playing against ten men which would have been easier."
After long shots from Watson and Butterfield in the opening quarter of an hour that didn't really trouble Adriano Basso, the game sprang to life in the 19th minute.
Michael McIndoe went down under Jose Fonte's challenge in the box but the referee waved play on, although replays showed that Fonte didn't get the ball.
Eight minutes later followed Palace's best moment of the match so far as Scott Sinclair flicked the ball over his marker and toe-poked it past Basso only to see it cleared off the line by Jamie McAllister.
Ex-Eagle Dele Adebola had a header well saved and Morrison was unlucky not to finish a fine move as teams went into the break level.
Watson's drilled shot was deflected inched wide minutes after the restart before City took the lead with a training ground free-kick.
Noble looked to be set for a shot from 25 yards but instead passed it to Nick Carle who in turn found Carey in the box who fired into the top corner.
Palace didn't really like look equalising and were dealt a blow when sub James Scowcroft had to be carried off only five minutes after coming on when he pulled his hamstring.
Fonte was sent up front for the final quarter of an hour and the move paid off when he tricked his way past Carey only for the City captain to chop him down.
Watson held his nerve to score to Basso's right and seemingly earn Palace a draw until noble popped up 30 yards out to give City the advantage.
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