The CS2 virtual skin market experienced a dramatic $2 billion loss overnight following Valve's introduction of a new policy allowing the synthesis of low-tier skins into high-tier ones. This policy, known as 'Red Skin Alchemy,' led to a significant devaluation of top-tier skins, such as Butterfly Knives, causing financial turmoil for traders and resellers heavily invested in these assets. The sudden market shift has resulted in substantial losses for many players, particularly 'daogou' or skin speculators, with some reporting losses exceeding 600,000 RMB. The policy change has ignited a backlash on social media, with criticism directed at Valve's CEO Gabe Newell. While some view the move as a necessary market correction, others see it as a disruptive force in a market that had strayed from its original gaming focus.