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articunojaz
I actually had a similar question on my test and this is the answer:

The reason the magnet loses its magnetic properties is is because when you drop the magnet or bump it against something, the domain can get bumped or dropped out of alignment.

Hoped this helped :)
Have a great day 
The magnetic domains are no longer aligned, i.e. they will no longer all point in the same direction as they more upon impact.