The Gunners were in full control at Molineux, with Nicolas Pepe putting them in front, until Luiz was sent off for tripping Willian Jose inside the penalty area in first-half injury time.
Luiz reacted angryily on social media with an Instagram story, simply posting the word “unbelievable” with four exclamation marks and several angry emojis.
Terry backed up his former Chelsea team-mate, responding up a Sky Sports post about the incident with: “Never a red card! Double jeopardy.”
In response to a comment disagreeing with him, Terry added: “Anyone who has ever played the game can see David never attempts to play the ball!!!
“He actually pulls out of the challenge, which means penalty but no red card.
“You obviously don’t play and, also, check the rules yourself.”