The defeat was Swansea’s first since they lost at Middlesbrough on the opening weekend of the season.
Sheehan’s side were on top in the first half at Birmingham, squandering several chances other than Vipotnik’s disallowed goal.
They lost their grip on the match after the break, however, and Blues were ultimately deserving winners.
That ended the Swans’ unbeaten run of seven games in all competitions which had already featured late-goal drama, having conceded a 97th-minute equaliser at home to Hull City in the Championship a week earlier before scoring two goals in injury time to stun Nottingham Forest in the EFL Cup on Wednesday.
“We’ve had a week of downs and ups and another down, but that’s the way it is. The players gave absolutely everything,” Sheehan said.
“You’re coming to Birmingham, who are in in a good place at home, not lost in a long time, but I think we came here and we caused them some problems.
“Did we come away from what we were doing well in the first half? Potentially.”