Queensland three-year-old Rothfire will be sidelined indefinitely after fracturing a sesamoid bone during the running of the Golden Rose.
The gelding started a popular odds-on favourite in Saturday's Group One race but tired quickly over the final stages to finish fourth to Ole Kirk.
Jockey Jim Byrne dismounted on pulling up, fearing something was amiss, and Rothfire was unsaddled and walked back to the enclosure.
A post-race veterinary examination ruled him to be lame but the news was even worse a day later.
Trainer Robert Heathcote had him vetted again on Sunday and Rothfire was found to have suffered the devastating sesamoid injury.
He is out of next month's $15 million The Everest and will need to spend at least a year on the sidelines to recuperate.
Rothfire had been secured for the Everest slot held by miRunners but they will now have to go back to the drawing board.
"miRunners is disappointed to report that Rothfire has been ruled out of The Everest after sustaining an injury in yesterday's Golden Rose," miRunners said in a tweet.
"Our thoughts are with Rob Heathcote, (strapper) Mel and all his connections at this really disappointing moment in Rothfire's career."
The three-year-old's withdrawal from the Everest means six positions in the race are now vacant.
Another six horses are confirmed for slots - Nature Strip, Gytrash, Classique Legend, Behemoth, Tofane and Farnan.
Both Nature Strip and Gytrash are due to step out in separate barrier trial heats at Rosehill on Monday.