After that derby victory, bet365 have cut Pep Guardiola's side to just 2/9 (1.22) in their Premier League winner market.
Liverpool have drifted to 3/1 (4.0) as they sit a point behind the holders with time running out to overhaul the deficit. The Reds also have an inferior goal difference which could come into play.
United were the biggest price ever for a home game in the Premier League eraon Wednesday night as they slipped to a seventh defeat in nine matches in all competitions.
There has been movement in the top four finish market too. Arsenal went down 3-1 to Wolves at Molineux and the Gunners are now out to 13/10 (2.30) to end the campaign in the Champions League positions.
Tottenham now look all but assured of a place at Europe's top table, priced at 1/25 (1.04) while Chelsea were the big winners from the Gunners' fruitless trip to the West Midlands.
Despite only drawing 2-2 with Burnley on Monday, Maurizio Sarri's men are now just 4/5 (1.80) for a top four finish compared to 8/5 (2.60) after that stalemate against the Clarets.
Manchester United complete the quartet of hopefuls but at 6/1 (7.0) their chances of Champions League football look to be slipping away, leaving Ole Gunnar Solskjaer with plenty of work to do to overhaul a side that have faded badly after a promising start under their Norwegian boss.
Liverpool have the chance to return to the top of the table as they host Huddersfield on Friday night. The bookmakers expect the Reds to do just that too, making the home win just a 1/14 (1.07) chance.
City are back in action on Sunday as they visit Turf Moor and the visitors are 1/7 (1.14) to collect maximum points, keeping their title bid on track in the process.