The 12-year-old painting had just been sold for 1,042,000 pounds ($1.37 million) - matching Banksy's all-time record.
Banksy is well known for his anti-establishment street art which often points a satirical finger at the world as it is today.
But the artwork was granted certification by Pest Control, Banksy's authentication body, and has been given the new title Love Is In The Bin.
Anonymous graffiti artist Banksy has released a video clip demonstrating how he built a secret shredder into the frame of a painting that self-destructed on Friday after being sold for more than £1.04 million ($1.36 million).
The European woman who bought the piece, who does not want to be named, said: "At first I was shocked, but I realised I would end up with my own piece of art history". The Sotheby's head of contemporary art, Alex Branczik, told The Art Newspaper that he was "not in on the ruse", but ahead of the auction, apparently, a couple staff members had commented on the hefty weight of the frame surrounding the piece.
"The post was captioned: "'The urge to destroy is also a creative urge' - Picasso". He stated that it had been renamed to "Love is in the Bin" (love is in the trash) after the event.
Banksy, who has never disclosed his full identity, began his career spray-painting buildings in Bristol, England, and has become one of the world's best-known artists. Still, it was a brilliant show, though he really could have used cross-shredded instead.
Researchers at Queen Mary University in London concluded that Gunningham was likely to be the art legend, although the man himself denied it.
The authors conceded that their study fell short of definitive proof. That's exactly why artist Banksy is making headlines.
In 2006 he secretly erected a life-size replica of a hooded Guantanamo Bay detainee inside a ride in the California Disneyland theme park. He filmed people as they passed by sure that the work was fake since because of the price.