There are three options for you. Every time she damages something whether it still works or not I would simply take it away and put it somewhere where she can't retrieve it. Tell her every time she damages or doesn't take care of something it will be taken away from her until she can learn to put it back where she found it, pick her belongings up and place them where they need to be by the end of the day, and take care of them. If you make this rule and she doesn't clean her room up by the end of the day (her belonging) then simply without words go in before bed time with a large garbage bag and start putting all the items out of place or laying around in the bag. This includes her clothes. When she is down to very little to wear she will get the idea. You need to work this plan out and let your other daughter know what you are doing so she will understand if her sister starts taking it out on her stuff. But your other daughter must know she has to keep her things up and hung up. Make sure to throw out all the damages, broken, or ruined toys permanently.
Second option is, stop buying her things, tell others not to buy her things until she can take care of them and unfortunately if you buy things for your other daughter you will have to put them away daily in a bin maybe at the top of your closet, she'll have to ask you for her things and it's up to her if she wants to share with her younger sister but as soon as she is done with it you put it back in the safe place whether there is protest from the younger daughter or not. This can also work with taking away privileges. Show her what she has damaged or explained what she did wrong and let her know the next time she asks to do something she simply doesn't get to do it.
Third option is, if you want your daughter to pick her things up and take care of them give her a small at the end of each week (a dime maybe) for keeping her room clean daily and take a short time on the weekend once she saves up for something she wants and take her to get it with HER MONEY. She will take care of things if she had to buy it with no help from you. She will learn quickly the power and saving money for a rainy day and when she gets something she is less likely to damage it. If she does throw it away, the she will have to start all over saving for another game or toy.
The only way the last one will work for someone who seems to be very determined to have her way is she has to clean her room 7 days per week unless she is sick. IF she misses a day without reason other than "not wanting to do it" then she doesn't get an allowance. You will actually be teaching several lessons here. How to take care and appreciate what you have, how to save money and count money, how to make smart purchases such as getting it NOW or saving a little longer for something else she wants really bad, and the biggest is responsibility over things and money.
Hope this helps. Please please please, make sure if you do implement any of these ideas make sure to follow through. If you fall short just once she knows you are weak and it will make the situation worse.