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Atletico Madrid failed to build on Wednesday's notable Champions League success against Juventus when they were beaten 3-1 at a resurgent Valencia in La Liga on Saturday.
Valencia last won the Spanish league title in 2004 but have started their latest campaign in impressive form and made a thrilling start at the Mestalla to race into a 3-0 lead by the 13th minute.
Atletico centre back Miranda put the ball into his own net in the sixth minute, Andre Gomes finished superbly after a fine run a minute later and Nicolas Otamendi nodded in at a corner to leave the champions reeling.
Mario Mandzukic pulled a goal back in the 29th when he followed up a Tiago effort to head home before Atletico squandered a chance for a second on the stroke of halftime.
Valencia goalkeeper Diego Alves, a penalty specialist, saved Guilherme Siqueira's weak spot kick, the 13th the Brazilian has stopped out of 31 faced in La Liga.
Atletico, showing little sign of fatigue after their 1-0 success against Juventus at the Calderon, pushed hard to get back into the match but the home side comfortably held on and Alves was barely tested in the second period.
Atletico's Italy winger Alessio Cerci had a miserable afternoon when he came off the bench in the second half, picked up two yellow cards and was sent off.
The second card was awarded in added time when he sprung the offside trap and put the ball in the net but the referee ruled he had used his arm to control it.
