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O'Neill focused on the positives, particularly the second half, after the heavy loss.
This optimism was questioned by some.
However, the 74-year-old felt justified after Celtic's subsequent 7-1 victory over Hearts.
He told the Celtic Player: "Well, the interesting thing you talk about the media, in all honesty, is that I know whatever you say, it'll go whatever way they want it to go.
"But I was really positive about the second half.
"I wasn't widely bothered about what media or fanzines were saying at the end of it all, as long as the players believed it was the most important thing. And they certainly did."
O'Neill believes the Hearts match will boost his team's confidence, especially young Callum Osmand, who netted twice.
He added: "I mean, for instance, if you think that young Osmand playing wide, that was his first start ever for Celtic.
"He's played wide, it's not really his favourite position.
"He wants to probably play alongside the centre-forward.
"Hopefully that will happen in time. Callum did very, very well, scored the goals, and looked a really decent player."
O'Neill also highlighted the importance of maintaining a positive outlook, saying: "I told the players in the dressing room after the Benfica game that that's it, we've got to take the positive side of it, otherwise you just might as well lie down."
Looking ahead, O'Neill is focused on the upcoming match.
He said: "We had great moments on Sunday, it was lovely to win, it was lovely to score the goals that we did.
"And now we've got a massive game on Thursday to try and win, to try and get back into that competition."