Atlanta Dream coach Karl Smesko knew that the team would face a big test when they faced the defending-champion New York Liberty on Tuesday night at the Barclays Center.

Beyond looking for their eighth victory in nine games, a win against the Liberty — who entered with the second-best record in the WNBA — would have secured a spot in the Commissioner’s Cup championship game on July 1.

The Dream surrendered a 17-point lead and fell to the Liberty, 86-81.

For nearly 27 minutes, the Dream (8-4) looked as if they were prepared to march to their first first Cup title appearance. Forward Naz Hillmon cut to the rim and converted on a layup to put the team up, 64-47, with 3:58 to play in the third quarter.

New York (10-1) faced its largest deficit of the season, but turned up its intensity defensively. The Liberty forced 10 turnovers in the second half — including six in the third period — and orchestrated a 13-4 run to end the quarter to cut the deficit to eight.

The Liberty trailed, 68-60, to start the fourth, and carried the momentum, using a 39-17 run behind solid defense, offensive rebounds and a burst from Sabrina Ionescu, Breanna Stewart and Jonquel Jones.

For the second straight game, Ionescu finished with 34 points and added seven rebounds, five assists and three steals.

“They kept coming,” Smesko told reporters in his postgame comments. “They got the momentum, and we weren’t able to hold them off. When you’re playing a championship-level team on the road, you just got to keep going at them. You’re not trying to hold on. You got to go win the game.”

Rhyne Howard, who finished with 13 points and nine assists, agreed: “I feel like we gave this one away,” she added. “We just have to go out there and finish plays and make sure that we’re capitalizing on the mistakes that the other team is making.”

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