PANews reported on May 20 that Deezy founder Danny said on the X platform that he found that Magic Eden had used a "little cleverness" on Coinbase. Magic Eden adds small outputs for market fees in each market purchase. These outputs are not large, such as 1,000 to 2,000 satoshis. In the future, integrating these small transactions will be troublesome and require additional costs. The clever thing is that Magic Eden did not use its own address to receive these UTXOs (unspent transaction outputs), but chose the Coinbase account address, so that these small deposits went directly into Magic Eden's Coinbase account, and Coinbase was responsible for the integration fees. However, Coinbase was unaware of this due to its large scale and slow response, so it suffered heavy losses during the integration process.
In addition, Mempool founder Mononaut said that in the past 24 blocks, Coinbase Prime has integrated 92,400 small transaction inputs from Magic Eden addresses, distributed in 308 transactions, at a price of about 7 sats/vb. These transactions paid a total of about 0.59 BTC in fees to recover about 1.75 BTC.