Alameda wallet has accumulated losses of $11.5 million under the control of liquidators, of which $4 million is "preventable losses"

Crypto data company Arkham tweeted today that in the past two weeks, under the control of the liquidator, the wallet address beginning with "0x997" of Alameda Research has suffered significant losses, with a total liquidation of $11.5 million and a maximum single liquidation of $4.85 million, which can prevent losses of more than $4 million. When it was taken over by the liquidator two weeks ago, the wallet address beginning with "0x997" held a short position of 9,000 ETH ($10.8 million), with collateral of 20 million USDC and 4 million DAI: a net balance of $15.2 million. Today, the current value of the account is $1.1 million in short Ethereum, with collateral of $1.4 million USDC: a net balance of $300,000.

This is the latest development in a “series of market activity that disrupted multiple short positions at post-bankruptcy Alameda.” Another liquidation occurred on Dec. 29 when the Alameda wallet moved $7 million in USDC and $4 million in DAI from decentralized crypto lending platform AAVE to a separate Optimism L2 account, about 30 hours after liquidators began moving assets out of the wallet. This withdrawal of funds put the position at high risk of liquidation, resulting in $11.4 million in USDC being sold to the liquidation bot on Optimism and the AAVE vault collecting another $100,000 in USDC as a liquidation tax. If the liquidator had used a feature to immediately close the position by selling collateral instead of withdrawing it from the wallet, at least $15 million could have been retained instead of the $11 million recovered. Therefore, the preventable loss was equivalent to $4 million.