They lost it while waiting in Twilight Town. Beldam blamed Vivian for losing it. Later, Mario (in nameless form) helped Vivian find it and returned it to her. She observed that the Superbombomb broke because she dropped it. Mario had the option to tell her not to worry or that he could fix it. It was too badly damaged to fix, so they threw it away.
Later on, Lord Crump found it, and tried to throw it at Bowser. Bowser said that he forgot to light it and breathed fire on it, creating a massive explosion.