Goals after the break from Connor McManus and Joe Thomson was enough for the Hoops to go top of the table in the SPFL Under-20 League, while the Light Blues sit two points behind in third spot.
Hibs are second a point away from each but have played once more.
Rangers were poor on the night with Chris Hegarty also receiving a straight red for a poor challenge on winger Paul McMullan.
And team boss Durie was left struggling to comprehend the nature of the defeat to their rivals.
He told the official Rangers website: "The boys have been on a great run and I've just said to them that I personally didn't see that performance coming.
"We were never at the races and we ultimately lost the game. We were fortunate to go in drawing 0-0 at half-time and I was delighted with that but we then deserved to lose it.
"We didn't get in about them and they dictated the pace of the game which I found disappointing.
"With their first goal, we let their winger get in too easily and when the shot came off the bar they reacted first. That was the story of our night and we were second best most of the time.
"It's really frustrating that the majority of our players never turned up in this match and to lose the goals we lost was poor.
"Now we've got to dust ourselves down. We've been on a good run and we need to show a wee bit of character now because we've not had a result like this for a long time."