The original work, which was called "Girl with balloon", was sold for 1.1 million pounds, almost 13 million kronor, three years ago.
But at the same time as the final order was hammered through, the lower part of the board was destroyed in a shredder built into the frame.
The expected final price for the shredded painting was in advance between four to six million pounds, but that estimate was at least below.
When "Love is in the bin" was auctioned off by Sotheby's in London on Thursday night, the price tag landed instead at a remarkable 18.6 million pounds - 17 times more expensive than the original painting.
It is also a new price record for a work created by the British artist, whose identity is still secret.
In March earlier this year, the painting "Game changer" was sold by Banksy for 16.8 million pounds, almost 200 million kronor, which was the previous record.