One layer said it was the first time he had seen every bookmaker run out of cash on a racecourse, while another estimated the on-course plunge to have taken £50,000 out of the ring.

With favourites having dominated the first three days of Glorious Goodwood, bookmakers took another hit when Iconic Times won division one of the 7f handicap by a length under Sean Dylan Bowen.

On-course bookmaker John Hutchinson, who trades as BDC Racing, said: "People were backing the horse with every bookmaker between 6-1 and 7-1 and couldn't get enough on. I laid a £6,000 to £1,000 bet and another bet to win £3,000, so I thought I'd better go to the paddock to look at the horse. When I came back we'd laid another £5,000 to £2,000.

"It was a monumental gamble and quite an expensive night. Never before have I seen every bookmaker run out of cash on a racecourse, but they did last night. That's how bad it was."

The gamble appears to have been orchestrated on course, with Coral and Paddy Power reporting they had not seen any activity out of the ordinary on Iconic Times.

Barry Pinnington was another bookmaker left to count the cost of the Wolverhampton coup.

"I laid it at £7,000 for £1,000 and while it didn't cost me that, it did cost me a substantial amount," he said. "A guy had a grand on with me, went next door and had a grand on and then went down the line and up the other way and had monkeys [£500] on.

"It shortened and then another guy came in and took all the 3-1 and 5-2 and must have had another £10,000 to £15,000 on up and down the line, and then another guy came in and had a bit of the 9-4. 

"There were nine books there last night and they've got to have taken at least £50,000 out of the ring."

Iconic Times was having his fifth run for connections after being bought by owners Max and Mabel for 13,000gns at the sales in March. The son of Time Test was recording his third win from 20 starts, his last victory coming off 11lb higher at Kempton last summer.

Since finishing sixth on his debut for his new yard in April, Iconic Times had been well beaten in three starts, most recently at Wolverhampton last month when tenth of 12, beaten seven lengths.

The racecourse stewards looked into the improved form and noted the explanation of the Candlish stable's representative that the winner had benefited from the reapplication of cheekpieces. Iconic Times was routine tested.

"The horse was drawn well [stall three] and down to a Class 6 0-60 handicap, so they knew he was up against inferior rivals, but the nature of what happened leaves a sour taste," said Pinnington.

"I spoke to the guy [punter] and said I hadn't seen you before and he said he'd just started gambling, and I just laughed as he had his carrier bag and was on the phone. They definitely knew what they were doing. You could tell by the way they were shovelling it on, defeat was out of the question."

The Candlish stable reaffirmed the reapplication of cheekpieces had played an important part and pointed to the fact that their two previous runners had won as a possible factor in the market plunge on Iconic Times.

"When we got him he was up in the 70s and he had four runs for us and ran okay a couple of times, but we felt he wasn't probably giving it his all," said Candlish's partner and assistant Alan O'Keeffe.

"We worked him the other morning in the cheekpieces and they seemed to wake him up, so we expected an awful lot more yesterday if he reproduced the way he worked at home in the cheekpieces.

"The yard is in good form. We had a winner at Glorious Goodwood and another earlier on the Wolverhampton card [Mission Command], so when you're on a streak like that people jump on it." 

Iconic Times, who has not won in six starts on turf, holds an entry at Catterick on Tuesday. 

Hutchinson believes the gamble highlighted the need for greater transparency around racehorse ownership.

"When you look at the registered owners [Max & Mabel], it's so obscure and I think questions need to be asked of the BHA because it's not very transparent," he said.