Arbroath boss Allan Moore held his hands up at Hampden and admitted that Queen’s Park were worthy winners.
However, Moore also knew the outcome could have been different had it not been for a shocking miss by new Dundee United signing Simon Murray.
The hosts raced into a two-goal lead.
Then, as Arbroath clawed themselves back into the game, Murray was presented with an open goal midway through the second half only to mis-hit his effort against the post.
Bobby Linn did grab a goal back in injury time but it was too little, and too late.
“It is not many times that the players have disappointed me but they disappointed in this game,” Moore said.
“We did not get any more than we deserved, and I am not going to sugar-coat it.
“We are still top of the league and have the belief that we can go on and win it.”
The Gayfield manager’s confidence that his men will bounce back and lift the League 2 title had irked Hampden head coach Gus McPherson, but Moore played things down, adding: “I think that I have a team that can win the league and I am allowed to say that.”
The hosts raced into the lead in four minutes when Paul Woods released Shaun Rooney on the right wing. His low cross was cleared to the edge of the box, and Woods sent a first-time effort past Marc McCallum.
Queen’s doubled their lead 15 minutes later. Darren Miller rolled a pass forward and Ross McPherson stepped over it, allowing Sean Burns to run through and slide a shot home.
After the shock of going two behind Moore’s side started to get into the game with Bobby Linn having a personal duel with home goalkeeper Willie Muir who produced three fine saves to deny the winger.
Arbroath would have had a route back into the game but for Murray’s howler and instead their only consolation came when Linn finally got the better of Muir with the aid of a deflection two minutes into injury time.
Moore said: “We warned the boys that their full-backs would attack us but they switched off.
“We tried to get Bobby Linn and Dylan Easton going further up the pitch but it never happened until we were two goals down.
“It was a blow that Paul McManus was out with a knee injury, and we did not hold the ball up well enough in his absence.”