England's victory, completed inside three days by the huge margin of an innings and 120 runs, saw the hosts go 1-0 up in the four-Test series, ahead of the third Test starting on Friday at Headingley.
Younis, one of the few Pakistan players to emerge with any credit from the team's Manchester mauling after top-scoring in both innings, said it was the manner of the defeat that rankled most.
"We are not just hurting as a team, we are angry," Younis told Bigstarcricket.com. "We are angry at ourselves for losing in less than three days at Old Trafford.
"We all know we are much better than what we managed last week."
England, after losing the toss, saw fast bowler Stephen Harmison rewarded for some hostile work with six for 19 in Pakistan's meagre first innings 119.
Hundreds from Alastair Cook and Ian Bell then strengthened England's position before left-arm spinner Monty Panesar removed five of Pakistan's top six, including the big three of captain Inzamam-ul-Haq, Mohammad Yousuf and Younis, as England wrapped up victory well before Saturday's third day close.
"Winning and losing happens. Thankfully we have won more than we've lost in recent months but it's losing in that manner that hurts the most," Younis explained. "We have all lost many matches but not in that way. We haven't felt like this since Australia when we lost our last Test series in 2004-05."
England's win was their best result in Test cricket since they recaptured the Ashes last year.
And Younis said Pakistan could draw on the example of their current opponents, who eventually won their first Test campaign against Australia for 19 years despite losing the series opener at Lord's by a thumping 239 runs.
"The boys will come back, I know we will," Younis added. "There are two matches left and we are more than capable of putting in some performances between us.
"Remember how England lost heavily at Lord's in the first Test in the Ashes last year? They came back and won the series 2-1 and it could easily have been 3-1 if it wasn't for the (Australia) saving draw at Manchester."
Pakistan though are set to be without their leading trio of fast bowlers for the third time in three Tests at Headingley with Shoaib Akhtar (ankle), Mohammad Asif (elbow) and Rana Naved-ul-Hasan (out of the tour with a groin injury) all still sidelined.
Nevertheless No 3 Younis, whose classy scores of 44 and 62 gave Pakistan fans something to cheer at Old Trafford, insisted morale remained intact.
"Nobody is blaming anyone," he insisted. It's not the batsmen or the bowlers' fault, we are all in this together and we will dig deep to get ourselves out of the position we are now in.
"We need to do every discipline right and put it all together for the last two matches at Headingley and The Oval.
"Most Test matches now have a good chance of a result so there is no reason why we still cant turn this series around."