Core Viewpoint - The recent update by Valve for CS2 has led to a significant drop in the virtual item market, with the market value plummeting from approximately $6 billion to around $4 billion, resulting in a loss of nearly $2 billion in just one day [3][5][8]. Market Impact - The market index for virtual items fell from 1663 points to 652 points within two days, a decline of over 60%, with a slight recovery to 881 points, still representing a significant loss [3][8]. - The price of popular items like the "Butterfly Knife" dropped from 20,719 yuan to 5,280 yuan, a decrease of nearly 75% [3][9]. Player Reactions - Many players reported substantial losses, with some losing tens of thousands to millions in a short period [5][11]. - However, some experienced players managed to sell their items before the crash, indicating that the impact was more severe on speculators rather than regular players [5][11]. Market Dynamics - Analysts suggest that virtual items are not inherently valuable but are artificially created through game mechanics, and this incident serves as a warning for the virtual goods market [6][15]. - The update allows players to combine five red skins to create one gold item, which has led to a devaluation of previously scarce items [8][15]. Future Outlook - There are concerns about whether the market will collapse further and if other game trading markets might face similar risks [6][18]. - Some industry experts believe that the update could lead to a healthier market by reducing speculation and allowing more players to access items at lower prices [14][15]. Historical Context - The trading of virtual items has been a significant aspect of games like CS:GO, where speculation and price manipulation have created a market akin to securities trading [17][19]. - Previous instances of market crashes in games like DOTA2 suggest that while markets may experience downturns, they can also recover over time [18].