Guardiola claimed immediately after Sunday's 1-1 draw - a game that saw both teams create numerous chances across the 90 minutes - that it was one of the 'proudest and happiest' moments in his illustrious career thus far.
Caballero understands why his manager was so pleased with the point, coming just four days on from their 6-6 away-goals defeat to AS Monaco in the Champions League that brought their European campaign to an early end.
"The same that he said in the press conference he said to us. He was really proud," Caballero told reporters. "It was difficult to start this game, it was Liverpool, a massive game, but after a big defeat against Monaco when we suffered a lot after the elimination, we did it.
"We played very well - with spirit, with mentality, with everything. We left everything on the pitch and we had chances until the last minute. So, to be a coach and see your team play this way, it is going to be magnificent to see."
City remain third in the Premier League following the conclusion of the latest round of action, sitting 12 points off leaders Chelsea and five ahead of fifth-placed Manchester United after playing one game more than their rivals.