According to a January 16 report from Arkham Intelligence, Alameda Research liquidators lost a total of about $11.5 million over the course of two weeks after seizing control of one wallet of the failing company, Cryptoslate informed.
According to the report, over $4 million of these losses could have been avoided if the liquidators had closed the firm’s position as opposed to withdrawing collaterals.
Cryptoslate stated that the Alameda positions were “dangerously close to liquidation” as a result of the removal of collateral from AAVE. According to Arkham, the end result was that $11.4 million USDC was eventually sold to liquidation bots on Optimism, and the AAVE treasury received over $100,000 USDC in liquidation tax.
According to Arkham, the liquidators could have kept about $15 million if they had ended their position by selling off collateral. Instead, they decided to remove extra collateral from the wallet, which led to a $4 million loss that could have been avoided, Cryptoslate further noted.
(With insights from Cryptoslate)