The Blues had looked set to win the game in normal time thanks to Gelson Fernandes' deflected goal, but Glenn Murray equalised after 89 minutes to force extra time.
Joe Anyinsah then put the Seagulls ahead before Stephen Ireland levelled the scores to force penalties, and Michel Kuipers saved Michael Ball's spot-kick to send Brighton through.
After a 6-0 win over Portsmouth and seemingly cruising into the third round of the Carling Cup, the Blues suddenly imploded and Brighton added their names to the list of lower league sides to have humbled Manchester in this competition.
New owner Sheikh Mansour and chairman Khaldoon Al Mubarak have a decent grasp of City history so perhaps they will not be too surprised!
The fact that the Premier League side led with less than two minutes of the game and let it slip would have been more of a shock.
When Mark Hughes analyses the performance he will surely come to the conclusion that it is not the likes of Messi and Kaka they need in January but some better defenders.
Without absent star names Robinho, Micah Richards, Shaun Wright-Phillips and Martin Petrov, the richest club in the world wasn't good enough to beat the team that plays on the pitch furthest away from the stands - it must have a separate postcode to the rest of the stadium!
'Shall we buy you a new stand' asked the visitng fans although their chant was a whisper by the time it reached the half way line and probably didn't seem funny at all after extra time.
Recent defeats and miserable nights to boot at Doncaster and Chesterfield were more the order of the day on the long drag home.
Boss Hughes said he would shake things up for the tie and give some of his regulars a rest before they resume their assault on the Premier League summit at Wigan on Sunday.
Return
So Brazil superstar Robinho was left back at base to welcome his family to Manchester and Elano, Didi Hamann and Ched Evans were stripped and ready but assigned to the cramped bench.
That left a welcome return to action for Michael Johnson who had missed the last three matches through injury but who had managed to at last to sign a new five-year contract and starts for this season's irregulars Ben Haim, Kasper Schmeichel, Gelson Fernandes and Danny Sturridge. Despite dominating for long periods they came up well short.
It was clear that those hitherto out of the limelight were not coated with the stardust that had attached itself to the side in winning five of the last six outings.
The early stages were cagey but the passing of the Blues', line-up in a 4-1-4-1 formation, was just the more crisp allowing Vincent Kompany to try his hand from 35-yards though his effort not only cleared the bar but also the athletics water jump pit that lurks behind one of the goals. Sturridge was accurate with a second effort but it was easily pouched by Michael Kuipers in the home goal.
Although there was plenty of technical ability on the pitch the Premier League side was missing was the extra yard of pace afforded by Robinho and Wright-Phillips.
That was not the case for Brighton speedster Steve Thomson who sped clear of the offside trap in the 22nd minute and beat Schmeichel but saw his shot rebound across the face of the goal from the inside of the near post.
That let-off prompted the previously pedestrian Blues to up their tempo slightly.
Kuipers became the busier of the two keepers dashing from his line to block from Jo after Johnson's astute through ball and then standing his ground to pouch a Sturridge drive from a tight angle. His third decent stop prevented Johnson from finishing a sweet move involving Pablo Zabaleta and Ireland and then he was relieved to see Jo snatch at a shot from fifteen yards that hit the aforementioned water jump.
Brighton, compact and busy, belied the 42 places between the sides by setting the tempo and cadence of the contest for long spells though City had the greater weight of chances.
The best chance of the game came in the 55th minute when Sturridge, switched to the right, crossed deep and Fernandes, arriving late on the far post somehow managed to head wide from five yards. He beat the ground in frustration and his manager was no less annoyed at the miss.
He was a lot happier in the 64th minute when Fernandes shot from just a bit further out hit Tommy Elphick on its way goal wards and nestled in the net.
Brighton at last looked cowed and the second half was largely one-way traffic with Kuipers preventing total relaxation in home ranks by twice saving well from sub Ched Evans and then keeping out a cheeky Fernandes back heel.
The Seagulls' first chance came in the 82nd minute when Murray went one on one with Schmeichel and lost after the long time redundant young Dane showed splendid concentration and bravery though that was undone two minutes from time when his defenders backed off Thomson long enough for him to find Murray who bundled home an unexpected leveller.
Then came the exchange of extra time goals and the penalty shoot-out in which Brighton held their nerve the better.
What is your verdict on the game? Have your say.
Tweet


Showing comments 1 to 25 and replies | View All
Peter Beagrie`s beagle (24/09/2008 at 22:35)
MancJD, Manchester (24/09/2008 at 22:35)
OZZIE2920, urmston (24/09/2008 at 22:37)
mister h (24/09/2008 at 22:37)
in his dreams
adders, Co.Cavan ex Manchester (24/09/2008 at 22:37)
I can well understand Robinho being omitted but why SWP, Micah Richards, Garrido, why make it all hard for ourselves? Our squad isn`t strong enough yet to decimate it in this way.
Surely professional players can play two games in three days?
Another chance of silverware needlessly thrown away.
boy blue, burnage (24/09/2008 at 22:39)
CTID
ulf blomberg, varberg, sweden. (24/09/2008 at 22:39)
g1lly blue (24/09/2008 at 22:40)
The Shiekth's Camel, previously Blue Arab, Oil rig, north sea (24/09/2008 at 22:40)
bluesoapopera, Blackley Manchester (24/09/2008 at 22:40)
If we beat Wigan on Sunday all will be forgotten, but a very embarrasing(although nothing new) performance. Get ready for the rags Edski, Peter Jones and Wayneold to come back out from under their stone
blue believer!!!, gt yarmouth (24/09/2008 at 22:41)
neil (24/09/2008 at 22:42)
Rodders, Worsley (24/09/2008 at 22:42)
(Sam Haggar)Mark Hughes get City to Europe (24/09/2008 at 22:42)
Robinho's Subbuteo (24/09/2008 at 22:42)
What an awful, awful result. Hughes clearly was eyeing this particular piece of silverware then?
ulf blomberg, varberg, sweden. (24/09/2008 at 22:43)
timmy, manchester (24/09/2008 at 22:43)
Jason G Robinson, Mottram St Andrew (24/09/2008 at 22:43)
OB1, (24/09/2008 at 22:44)
Didn't go tonight but listened to Sky News then BBC and we clearly should have won but didn't take our chances. Must say when I saw the team earlier in the evening I worried about where goals would come from. I think the likes of SWP should at least have been on the bench, unless injured in some way. This tournament should have been a priority. Still a lot of work to do to turn us into winners but at least the funds to do it with should be available.
Edski Vega, Nottingham (24/09/2008 at 22:45)
Yes we dominated but yet again failed to take our chances!
The headlines tomorrow - as they have been for years running - Humiliating! 'Worlds Richest Club humiliated' blah blah
First game of the competition yet again and yet another woeful display of finishing - same story in Cyprus, same story in Denmark! Joa Alves Jo abysmally wasteful for three games running now.... Jo cost 20million - you could Buy Brighton and its stadium and whole squad 4 times over yet the crown JO-ker again wastes chance upon chance! Johnson and Ireland missing chances galore! It is so predictable
Without Hart, SWP and Robinho we are shamefully poor again!
Scmichael 2 attempts against him = two goals in his net, 5 pens against him = 5 pens in his net - his dad once said Utd could put a wheelie bin in goal and they would still conceed as many as they did - that was deff the case tonight!
Sturridge Useless.... (all the backing I have gave him all season and he doesn't turn up), Evans and Caicedo poor as well
Former Rochdale player Murray who I saw play a few times before his move to Brighton scored with last kick of game....I just knew it would happen yet again but for some silly reason put money on us to win - how silly (never go against your instinct).
Ball the balloon fool was the one that yet again knocked us out of yet another cup.... a shameful night where we missed almost 20 chances and Brighton scored with the two they had!
Bring Benjani back in the team and drop useless Joa alves Jo.
The only positives are that Hughes now knows that the fringe players have let him down major major style when he gave them the chance to do a job..... instead of showing they are a talented bunch (like Arsenal youngsters) they show they are distinctly average who cannot perform against a stubborn opposition. Back to the academy for a few of them i'm affraid!
bluethunder (24/09/2008 at 22:45)
devoed.
SUPER CITY OF RAIN MODE (24/09/2008 at 22:46)
Dave Pollard (24/09/2008 at 22:47)
1.618034... Golden Gordon Ottershaw, Barnstoneworth, West Yorkshire (24/09/2008 at 22:47)
Not the end of the world either though, as our schedule is/was packed, so roll on the weekend, no slip-ups against Omonia on Thursday and then gear up for Liverpool, which should give us a REAL guide to where we might be going.. Should be good though! Wouldn't it be great to do them!
Onwards & Upwards
CTID
Bluereed my voice only (24/09/2008 at 22:47)
CTID