United looked to have confirmed victory at Old Trafford before being pegged back by two goals in the last seven minutes courtesy of Nikica Jelavic and Steven Pienaar.
Ferguson, whose side face City in a vital Manchester derby a week Monday, said: "It was an absolute giveaway. We needed to see the game out.
"It was a travesty - the football we played was fantastic. We scored some great goals and to give away four goals at Old Trafford, I couldn't believe it.
"They were defensive lapses. Their goals were soft. We created goals by really good football - they got their goals easily.
"Today was a bad performance. Recently we've defended very well.
"We need to get a result now at the Etihad and there's no reason we can't do that. There's been the expectancy from City that it could be their decider - it's our decider too.
"It's a big game. It's always a derby of the highest proportions and next week will be no different."
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