Genesio’s men led by two goals at half-time following strikes from Nabil Fekir and Tanguy NDombele, but Andrej Kramaric and Pavel Kaderabek plundered second-half goals to earn Hoffenheim a point, despite the visitors having Kasim Adams dismissed.
The result left Group F wide open, with second-placed Lyon three points behind Manchester City, while Hoffenheim trail the French club by three points ahead of the last two rounds of matches.
Genesio vented his frustration after being denied a victory that would have put Lyon within one point of qualification.
“We should have scored a third goal,” he said, with his side having conceded the equaliser in stoppage time. “There’s a lot of anger, we let two points slip away.
“We made too many bad choices. The players have to be more ruthless.
“We panicked when there was no reason to.”
Genesio’s opposite number Julian Nagelsmann paid tribute to Hoffenheim goalkeeper Oliver Baumann for keeping his side in with a chance when Lyon tried to extend their lead.
Baumann pulled off a number of good saves with the score at 2-1, paving the way for Kaderabek to grab a last-gasp leveller with a close-range volley.
“We had a good 20 minutes at the start, but then we got complacent,” said Nagelsmann.
“They were able to create chances too easily.
“What’s important is that we started pressing immediately after losing possession, because that’s where Lyon had a lot of time.
“It was all or nothing after the red card. Baumann held them up well and our opponents weren’t able to finish.
“Sure, it’s a lucky point for us, but that’s how it is sometimes.”
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