Is it possible to lose libido and penis sensation overnight if you edge everyday?

It certainly seems to have happened to you.

I could try to sound super smart and ramble about excessive sustained dopamine levels, or be funny/sarcastic and say your dick went on strike, but I really don't know anything about how it works. All I know is what has happened to me, what other guys report, and what seems to work. The extremely simple version is, excessive beating off messes your body up. Stop doing that so much, and your functions should return to normal. If you get a nice streak and it's not better, see a doctor.