A last-gasp goal gave Wolves the points in a game that Sunderland had dominated almost throughout.
It was practically unbelievable but chance after chance had been spurned and Sunderland paid the penalty in full at the end of their Under-18 Premier League Group Three clash, meaning it is two defeats out of two in the end-of-season section for the young Black Cats.
Striker Lee Connelly could have claimed three goals in the first 20 minutes, but the normally clinical finisher fired wide and over from great positions.
Ben Kimpioka made a strong run down the middle to feed Oscar Krusnell, who blazed over the bar from five yards.
But Wolves some how weathered the onslaught and came back into the game, which amazingly still remained goalless at the break.
The West Midlanders were stronger in the second period and Sunderland keeper Anthony Patterson had to make two fine saves from Wolves winger Ryan Giles.
The Wearsiders came back with full-back Owen Gamble making a mazy dribble that took him pass four defenders but once again the finish was turned aside by keeper Rory Brown.
Then came the final devastating sucker punch for the hosts two minutes from time.
In the build-up, Jack Diamond thought he had been fouled and stopped, but the referee allowed play to continue. The ball was then squared across goal where Wolves leading goal scorer Jordan Allan – who grabbed a brace against West Brom last week – had the simple task of slotting home.
Sunderland coach Mark Atkinson said: “It was so frustrating – after all our dominance it was almost unbelievable that we had lost.
“But it was the same last week – we must learn to take our chances, if you don’t this can always happen”.
Sunderland: Patterson, Gamble, McAughtrie, Allan, Taylor, Young, Diamond, Hackett, Conelly, Kimpioka (Storey 79), Krusnell (Best 60). Subs not used: Woud, Slack, Southern.