City led twice thanks to goals from Erling Haaland either side of half time but they face a tough task to remain in the Champions League.
Failed to cut the ball out in the lead up to Haaland’s goal but made a solid block to deny Haaland a second.
Minutes before City's latest collapse, Erling Haaland had converted from the spot to net his second goal of the match and 49th strike in 48 European Cup games.
Kept busy in the first half and made some good saves but could do nothing to keep out Erling Haaland’s left-footed strike nor his penalty.
Ederson made some good saves including great stops to deny Vinicius and Bellingham but was at fault for Madrid's late strikes.