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Looking at a recent closed auction (https://defiexplore.com/liquidation/ETH/4876), I see that the auction keeper overpaid for too little ETH. Why?

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They didn't overpay, they paid 207.97 DAI for 1.12 ETH, which is 185.6875 DAI per ETH. Around ~$5 profit per ETH. Not much, but it likely covered the gas costs + a little real profit

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