Reds let slip a lead before conceding two goals in the last 21 minutes to send them home pointless.
Crawley Town let slip a lead to lose 2-1 at Luton Town.
James Collins scored the opening goal of the game on 59 minutes with a powerful strike to net his 17th goal of the season.
However the home side responded with goals by Danny Hylton in the 69th minute and Ollie Palmer with 17 minutes to go which proved enough to edge Reds to their third 2-1 defeat in four matches.
The loss was Crawley's tenth away defeat of the season and saw Crawley drop a place to 17th, while the Hatters rose up one spot to fourth in League 2.
Head coach Dermot Drummy made two changes to the side which drew 0-0 at Blackpool on Tuesday. Enzio Boldewijn returned in place of Andre Blackman who was on the bench.
Having completed his two-game suspension, Lewis Young was a last-minute replacement for Joe McNerney who got injured in the warm-up.
Josh Lelan, Kaby Djalo and Conor Henderson all kept their places in the side.
REDS: Morris, Lelan, Connolly, Young, McNerney, Roberts, Djalo (Murphy 77), Henderson (Payne 82), Boldewijn (Bawling 82), Smith (capt), Cox, Collins
Unused subs: Mersin, Blackman, Bawling, Clifford
Luton: Macey, O'Donnell, Cuthbert, Sheehan, Senior, Rea, Mpanzu, Jonathan Smith, Cook, Hylton (Marriott 90), Vassell (Gambin 67)
Subs: Moore, Gray, D'Ath, Palmer, Juston
REFEREE: Christopher Sarginson (Staffordshire)
ATTENDANCE: 7,316 (225 away)