Among the works of art auctioned on Friday was a motif depicting a girl reaching for a heart-shaped balloon.
Shortly after the artwork was hammered through for just over 1 million British pounds, almost 12 million Swedish kronor, the painting was shredded out of the frame, writes The Guardian.
Shortly afterwards, Banksy posted a picture on Instagram of the artwork dangling in strips from the frame entitled "Going, going, gone".
"We seem to have been beaten," said Alex Branczik, head of Sotheby's contemporary European art department.
The buyer in shock over the incident
It is still unclear whether the incident has destroyed or improved the value of the artwork.
Sotheby's said in a statement: "We have spoken to the buyer who was shocked by the incident.
We are talking about what the next step will be ”.
The auction house has not revealed the name of the buyer.
The motif on the girl and the balloon is one of Banksy's most well-known and can be found in several of his works.
It first appeared on a house facade in London.