Hoddle says Jose Mourinho’s men went downhill instead of fighting to secure a place in the final eight of the competition.
Tottenham Hotspur took a two-nil lead coming into the second leg of this tie, but allowed their advantage to slip through their fingers against the Croats.
The visitors had the lion’s share of possession in the first half but could not make it count as Mislav Orsic gave Zagreb the lead on 62 minutes.
He brought his side back level on aggregate seven minutes before the final whistle to take the game into extra time.
The Croatia international completed his hat-trick in the first minute of the second half in extra time to knock out the North Londoners.
Hoddle was speaking as a pundit on BT Sport and he said: "Mentally they have got it wrong right through the game. I said, if Zagreb score I am expecting a reaction. They had chance to respond but they went backwards.
"They went downhill instead of fighting. They should have upped the gears but they didn't. There was not enough quality in the team.”
“Everyone was looking at each other. What happened was a disaster. Hojbjerg not playing shows you what they need. A massive miss. He is one who leads and is always talking and demanding.
"They lost the plot but they also lost their heart."
