Hundreds of Kirkdale residents were ordered to evacuate their homes amid fears of fire spreading to gas cylinders inside a garage.
Firefighters rushed to tackle flames bursting from the lock-up in Delamore Street, Kirkdale, just before 4pm yesterday afternoon.
Having been informed of the acetylene canisters inside the burning workshop, fire and police officers quickly emptied the surrounding buildings in case of an explosion.
Aided by a police helicopter circling overhead with a loudspeaker ordering people to leave, around 400 residents fled for the night.
Around 150 had to be moved to the nearby Everton Park Sports Centre where they were fed and spent the nights on camp beds.
The cordon is still in place and police say it could be for up to 24 hours.
It is believed the fire was accidentally started in a bin that was previously used to store oil.
Station Manager James Berry said: "The workshops are in a tight residential area and our main priority is to ensure the fire doesn't spread to the domestic houses attached."
Firefighters remained at the scene overnight, cooling cylinders with water every two hours.
Safety crews have to remain in attendance for a minimum of 24 hours to cool the cylinders and assess when residents can return.
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