<p>Rapid digitalization in the past decade has given rise to a new form of e-commerce, namely, live-commerce. The innovative element at the core of this new model is that merchants can use real-time video streaming to display products and communicate with consumers, making private recommendations to the consumer, thereby creating an atmosphere similar to face-to-face shopping. Although such models create unique value for consumers and have received widespread attention and investment from platforms, sellers, and other parties the ecosystem of value co-destruction can no longer be ignored. Value co-destruction is a process of interacting service systems that decreases the well-being of at least one of the interacting systems. This paper aims to address the problem of value co-destruction in the live-commerce ecosystem by establishing a four-party evolutionary game model that consists of the platform, merchants, streamers, and consumers. Our findings reveal that the live-commerce ecosystem is at risk of value co-destruction, potentially harming all participants’ long-term interests. The research highlights the need for platforms to implement balanced governance strategies, avoiding overly restrictive measures that could lead to counterproductive outcomes. Additionally, clear contractual frameworks between merchants and streamers are crucial for maintaining a healthy ecosystem. Consumer actions in reporting issues and providing feedback play a vital role in regulating behavior, though reward systems for such participation must be carefully designed to prevent unintended negative impacts. These insights contribute to understanding the dynamics of the live-commerce ecosystem and offer practical recommendations for mitigating value co-destruction risks in this rapidly evolving digital marketplace.</p>