• Alameda Research’s liquidator positions were liquidated twice in less than four days due to forcibly closing leveraged positions.
• The liquidators lost $15,000 of Curve DAO token (CRV) debt in exchange for 0.83 wrapped Bitcoin (WBTC) — or roughly $17,600 of their collateral.
• Alameda Research liquidators were forced to become active on-chain to move assets to safer multi-signature wallets after a loss of roughly $1.7 million in funds.
Alameda Research, one of the top quantitative trading and investment firms in the cryptocurrency industry, has recently been hit with liquidation for the second time in three days. This is due to their leveraged positions being forcibly closed.
The liquidators at Alameda Research lost $15,000 of Curve DAO token (CRV) debt in exchange for 0.83 wrapped Bitcoin (WBTC) — or roughly $17,600 of their collateral. The liquidators attempted to remove assets from a borrow position on the DeFi protocol Aave. Instead of paying back the debt to close out the position, the liquidators opted to remove all extra collateral, which resulted in the position being liquidated. This liquidation cost the liquidators four WBTC, which is worth $72,000.
This is not the first time that Alameda liquidators have been forced to become active on-chain to move assets to safer multi-signature wallets. On December 28, 2022, Alameda lost roughly $1.7 million in funds through mixers often used by hackers. Despite the liquidators‘ best efforts to secure all funds, Arkham analysis revealed that „significant 7- and 8-figure sums of capital“ were left stranded in Alameda wallets.
Alameda Research is still holding a position short of $16,500 of CRV, which is collateralized by $23,000 WBTC. It is unclear whether or not the liquidators will be able to recover the funds.As of now, the market is highly volatile, and the liquidators must remain vigilant in order to protect their positions. It is possible that the liquidators could be hit with another liquidation in the near future if they are unable to close out their positions in time.
Alameda Research is a renowned quantitative trading and investment firm in the cryptocurrency industry. It is unfortunate that they have been hit with liquidation twice in less than four days, but it is a reminder that the market can be unpredictable and highly volatile. The liquidators must remain vigilant and be aware of any changes in the market in order to protect their positions.