Reds fans were absolutely livid when Curtis Jones was taken down in the box, only to have the awarded penalty overturned by VAR.
However, former Brighton goalkeeper Sanchez appeared to get a touch on the ball.
Premier League Match Centre said: "The referee awarded a penalty to Liverpool for a foul by Sanchez on Jones.
“The VAR deemed that Sanchez won the ball and no foul was committed and recommended an on-field review.
“The referee overturned the original decision and play restarted with a drop ball."