YORK City's hopes of making it three home wins on the bounce were ended by in-form Scunthorpe United at Bootham Crescent.
Second-half goals from former City striker Martin Carruthers and Alex Calvo-Garcia sealed City's fate.
To make matters worse for the Minstermen, on-loan Sunderland defender Mark Maley was sent-off in the dying embers of an entertaining tie for a second bookable offence.
It looked a harsh decision on Maley. Booked already following an off-the-ball incident with Carruthers, Maley shook Peter Beagrie to the bones with his crunching tackle that brought a second yellow but appeared to win the ball.
Despite Scunthorpe arriving at Bootham Crescent as the form team in Division Three - they have now lost just once in 15 games - the Minstermen edged the first-half.
Lee Nogan squandered City's best chance when after good work by Maley down the left he fired over at the far post.
Beagrie slammed a long distance effort against the post and Lee Hodges also forced a fine save from Alan Fettis but the Minstermen had every right to feel confident as the second half got underway.
Minutes after the restart, Kieran Darlow, making his first starting appearance for more than a season in place of a sick Graham Potter, was within a whisker of breaking the deadlock.
His rasping volley produced a fine save from Tom Evans in the United goal but the miss was to prove the turning point in the tie.
Within a minute, Scunthorpe got their noses in front as Carruthers prodded home from close range after Hodges' piercing shot had hit the post.
City were forced to chase the game but it was Scunthorpe who now looked the more likley to score again.
The Iron finally made certain of the points seven minutes from time.
Hodges cut in from the right, picked out an unmarked Calvo-Garcia, and the United midfielder stroked the ball past Fettis with undue fuss.
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