The vest, made from a former police issue garment, was one of five created by the graffiti artist to highlight the high levels of knife crime in the UK.
'In a way only Banksy can, he manages to powerfully condense a complex social issue through one redolent object,' said Emma Baker, head of contemporary evening sale at Sotheby's.
'There is no doubt this artwork is more pertinent now than when the first vest debuted at Glastonbury -- an event that saw it become the symbol of a defining cultural moment,' she added.
The sale value was more than double the pre-sale estimate of £300,000.
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