We refute the Probabilistic Universal Graph Conjecture of Harms, Wild, and Zamaraev, which states that a hereditary graph property admits a constant-size probabilistic universal graph if and only if it is stable and has at most factorial speed. Our counter-example follows from the existence of a sequence of $n \times n$ Boolean matrices $M_n$, such that their public-coin randomized communication complexity tends to infinity, while the randomized communication complexity of every $\sqrt{n}\times \sqrt{n}$ submatrix of $M_n$ is bounded by a universal constant.