• Alameda Research’s liquidator positions have been liquidated twice in less than four days due to forcibly closing leveraged positions.
• After the loss of roughly $1.7 million in funds through mixers often used by hackers on Dec. 28, 2022, Alameda liquidators were forced to become active on-chain to move assets to safer multi-signature wallets.
• Alameda liquidators caused a liquidation of roughly four WBTC — worth $72,000 — in addition to a penalty slashed from the liquidated collateral.
Alameda Research’s liquidators have suffered liquidation for the second time in less than four days due to the closure of leveraged positions. This is the result of the $1.7 million loss of funds through mixers often used by hackers on December 28th, 2022. Alameda liquidators have been actively moving assets to safer multi-signature wallets in order to prevent further losses.
Unfortunately, their efforts were not enough to prevent a liquidation which saw the loss of four WBTC (worth $72,000) in addition to a penalty slashed from the liquidated collateral. According to Arkham Intelligence, Alameda Research liquidators were liquidated for the second time in three days in light of recent market movements. Alameda liquidators wrote off $15,000 of Curve DAO token (CRV) debt on Jan. 14 in exchange for 0.83 wrapped Bitcoin (WBTC) — or roughly $17,600 of their collateral.
Alameda still holds a position short $16,500 of CRV — collateralized by $23,000 WBTC — which is in danger of liquidation should the markets continue to move unfavorably for Alameda Research. On the wallet 0x712, liquidators attempted to remove assets from a borrow position on the DeFi protocol [Aave]. Rather than paying back the debt to close out the position, the liquidators opted to remove all extra collateral, putting the position in danger of liquidation.
It is unclear what the liquidators will do in the next few days, but it is likely that they will attempt to close out positions and move funds to safer wallets in order to prevent any further losses. Alameda Research’s liquidators have already suffered two liquidations in a short period of time, and it is likely they will attempt to take further steps to secure their funds.