WREXHAM surrendered possession of the LDV Vans Trophy in shambolic fashion as they paid the price for an appalling defensive performance in an exciting period of extra time at Bloomfield Road.
Having previously gifted twice-winners Blackpool an early lead, two goals from Mark Jones late in normal time seemed to have turned the tie in the Dragons' favour, but former Wrexham defender Mark McGregor popped up to force the extra half-hour.
Dragons captain Darren Ferguson restored Wrexham's lead with a fine shot in the 96th minute but two horrendous defensive mix-ups in the space of six crazy minutes allowed Keith Southern and Scott Vernon to snatch victory with 15 minutes to spare.
With Andy Holt passing a late fitness test to play, there was only one change for the visitors - Trinidad international Dennis Lawrence returning in place of Paul Linwood, who was recalled on Monday by Tranmere Rovers.
Although there few other defensive options open to Dragons boss Denis Smith, the switch was looking decidely dodgy after only 90 seconds when, with keeper Mike Ingham odds-on favourite to collect a long ball, the big central defender inexplicably headed it over his team-mate and Matt Blinkhorn had the simplest of tasks to score.
Lawrence was immediately moved to the right of the back three, with Dave Bayliss given the task of directing defensive operations as Wrexham set about repairing the damage.
But long-range shots from Chris Armstrong and Jamie Burns were a timely reminder not to throw caution to the winds and when Holt surrendered possession to Tommy Wright on the by-line who picked out Simon Wiles, the defender did well to recover his ground and complete a goal-line clearance.
Wrexham wasted a great opportunity to level the game on the half-hour when Ferguson picked out Jon Walters' run, but the striker was being harried by two defenders going into the box and drove the shot wide of Les Pogliacomi's goal.
Bayliss and Wright were both booked after a tussle which reflected the tension bubbling just under the surface as Wrexham gained more of a foothold in the game and it needed a fine challenge by Peter Clarke to deny the turning Walters just six yards out.
The visitors continued to force the pace from the restart, but the anxiety of chasing the game was creeping in. Too often passes went astray at the vital moment and composure on the ball was at a premium.
And when Wrexham did get it right, Jones threading the ball through for Walters in the 55th minute, Clarke was there once more to protect his keeper.
The Dragons striker was involved again when picking up the ball 60 yards out and feeding Alex Smith down the left before running on to meet the return, only to fire high and wide from the edge of the penalty area.
The introduction of substitute Lee McEvilly for Simon Spender after 62 minutes gave an added presence up front, but it signalled a revival by the home side and former Racecourse favourite McGregor saw his goalbound effort through a crowded box blocked.
McEvilly went desperately close in the 69th minute, sticking out a boot to meet Holt's low cross but the ball skidded inches past Pogliacomi's right-hand post.
But when Robbie Foy replaced Bayliss with 17 minutes left to create a 4-3-3 formation in the clearest indication of Wrexham's desire to get back on terms it quickly paid dividends with two goals in as many minutes.
Just as they did at Barnsley on Saturday - conceding a brace in quick succession - Blackpool fell apart again after Walters found space on the right to pick out Jones' run and his shot from 20 yards slid under Pogliacomi's body.
Two minutes later Walters was on the other flank and, though his cross missed Ferguson, Jones obliged once more with stunning accuracy to the delight of the 200 or so travelling fans.
Jones should have completed his hat-trick eight minutes from time when he raced onto Foy's ball, but screwed his shot wide. And it was to prove costly when the home side equalised two minutes later, McGregor turning on a poor defensive clearance to lash the ball past Ingham and force extra time.
MAN OF THE MATCH : Darren Ferguson. Led by example and kept going to the end.
BLACKPOOL : Pogliacomi; Coid (Grayson 29), Clarke, McGregor, Armstrong; Wiles, Southern, Doolan, Burns (Prendergast 41); Wright (Vernon 65), Blinkhorn. Subs: L Jones, Butler. BOOKED: Wright, Doolan, Southern.
WREXHAM : Ingham; Bayliss (Foy 73), Lawrence (Mackin 91), Holt; Spender (McEvilly 62), D Williams, Ferguson, Mark Jones, Smith; Bennett, Walters. Subs: Michael Jones, M Williams. BOOKED: Bayliss.
REFEREE: Clive Oliver
ATT : 3,239.