The hosts conceded goals to Michu and Nathan Dyer at the start of each half and never looked like getting back into the game as they fell to their fourth Premier League defeat in five outings.
And after the game Holloway, who spent the match in the stands as he sat out the second of his two-game touchline ban, accepted partial responsibility for the result.
"It's as bad as I ever want to feel sat here," he said.
"I didn't enjoy any minute of it. It was my fault for not being there on the line with them, for losing my temper against Tottenham.
"I felt estranged and out of it and they've got to feel the manager is with them so please blame me, I needed to be there today.
"I'm absolutely gutted. If you'd have seen the work we did and how sharp we were the day before and it all faded away in one minute and 30 seconds."
Holloway made three changes to the side that lost 2-0 at Manchester United, and he felt the alterations hindered his team.
"The changes I had to make made it looked like they were strangers," he added.
"We got the first thing so wrong, it's probably the worst goal I've ever seen.
"After that the new boys didn't have an identity, I'll hold my hand up, it didn't work.
"What we've got to try and aspire to is to get our identity with the ball better than it is at the moment.
"It's about what it means wearing a Palace shirt, with and without the ball, and I didn't see it and that's what hurts me the most.
"Those new lads have just had a volley from me because if I had that Palace shirt on I know what it would mean to me. I would have chased back and got back and I'd have known my job."
Holloway went on to warn his team that they need to improve their performances quickly if they are to secure Premier League survival this season.
"We've got to sew it all together," he continued.
"We've got to do it and get some points and we've got to do it so fast it's frightening.
"We've got a lot of work to do to make sure they know their job. I don't think we had that belief because we had too many players who've only just come here and I've got to hold my hand up for that.
"You've got to learn and unfortunately the games are ticking, 33 games to go. We need to look at what we do better and take it into the next game (against Southampton)."
