A shattered Kurtley Beale after the loss. Picture: Brett Costello

Scoring 26 unanswered points in the final quarter gave NSW some cause for optimism, but Gibson wasn’t hiding from the uncomfortable issues surrounding their lacklustre first half display on Friday night.

“We definitely did not play well, we’re very firm on that, we cannot at all be satisfied with the fact we came back to [score] 26 points, we got outplayed,” Gibson said.

“That’s the facts. We gave up too much in the first half, and while valiant in our effort — I’ll acknowledge that — we got beat, and that’s hard facts, and it’s not good.

“Strategically the Highlanders did a good job. I take full responsibility in terms of preparing the team for that type of strategy, we were late adjusting.

“It’s going to be part of our evolution through this competition.”

Nick Phipps and Ben Smith compete for a Garryowen. Picture: Brett CostelloSource:News Corp Australia

The Highlanders led 30-0, before the Tahs staged an astonishing, epic fightback that defied the logic of what had transpired in the first three quarters of the game.

The Kiwis were largely able to contain NSW’s wide-running attack, punishing them for errors in counter-attack, while consistently making inroads with short chips and solid set-piece.

They had scored four tries; a double to Elliot Dixon and one each to Liam Squire and Ryan Tongia, before the Tahs were on the board.

Reserve NSW backrower Jed Holloway scored a late hat-trick and prop Tom Robertson also crossed within a frantic 17-minute period but NSW fell agonisingly short of a historic win, with Otago’s side holding their nerve to record a third straight win over the Tahs.

Not since 2013 has NSW lost back-to-back games, and it took the champions to do it, following the Brumbies win over the Tahs last start.

This was looking like a repeat of last year’s semi-final loss, but worse, as the Highlanders took a commanding 30-point lead that seemed destined to head closer to 50.

It was 22-0 at halftime.

Seven minutes into the second half, the game appeared buried.

Michael Hooper was at his inspirational best in the second half.Source:Getty Images

NSW were deep in attack following a Kurtley Beale break, but lock Dean Mumm lost the ball in the ensuing phase. Seconds later the Highlanders had broken down the other end of the field.

Five-eighth Lima Sopoaga put in a cross-field chip and Highlanders backrower Dixon — who had already scored a first-half try — leapt over Zac Guildford and galloped to the line for his second, a fine athletic display from the blindside.

At 27-0 down, the Tahs were scattered and the 18,351 fans at Allianz Stadium aghast.

But everything turned once Gibson introduced his reserves in the 55th minute, after Sopoaga had slotted a drop-goal to put the Highlanders 30-0 ahead.

Holloway scored his first Super Rugby try one minute after entering the fray, slicing through from a deft Nick Phipps short ball.

When Holloway crossed for his second minutes later off a beautiful Beale pass in contact, a comeback still seemed impossible.

But rookie prop Robertson, in his debut, stole the ball from a Highlanders ruck and ploughed over to get his team back to 30-19 with 11 minutes remaining.

When Holloway somehow reached over from a driving maul, finding the tryline amid the bodies of defence, the stadium erupted as NSW closed the gap to four points with seven minutes remaining.

NSW created a number of breaks in the dying stages but last-ditch tackles and handling errors prevented them from scoring a win for the ages.

Ryan Tongia is bent backwards.Source:Getty Images

“It’s certainly not a happy change-room, it’s a tough loss,” Tahs skipper Michael Hooper said.

“We didn’t play well. I’d prefer to lose by three points in the last minute than go down the way we did and then try to come back.

“The thing is we’ve got so much improving in us that it should be a really exciting Monday coming in.

“It feels like the competition has been going for ages but we’ve only played three games so we’ve got so much time to really roll into next weekend.”

Million dollar man Beale had a rough start, missing his first two penalty kicks, losing the ball in prime attacking territory, and kicking the ball dead from an attempted touch-finder off a penalty.

Beale’s low pass to Wycliff Palu in the 30th minute was spilt by the backrower, and rival Liam Squire scooped up the ball, barged through the cover tackles of Beale and David Horwitz to race nearly 40 metres for a try.

Having been beaten by Queensland in the scrum and then overwhelmed by the Brumbies in that area, the Tahs vowed to fix their issues in the bye week.

But on their first feed, the Highlanders churned the grass and marched them backwards at an alarming rate, earning a penalty and leaving NSW’s pack bewildered.

Hooker Tolu Latu’s uncertain lineout throwing also allowed the Highlanders to steal possession three times in the first half.

The visitors had crossed for simple tries off missed tackles or turnover ball.

But Beale was also instrumental in NSW’s fightback, while their scrum and lineout were more solid in the second half.

However, with 10 days before their Easter Sunday showdown with Queensland in Brisbane, the Tahs have much to address.