Didn’t this consolidation ruin all the work done coinjoining not only for the utxo owner but also other coin join participants?
The problem with wabisabi coinjoin transactions is that you end up with dust UTXOs and need to consolidate them after coinjoin: https://mempool.space/tx/b893d2f3dccf0b4ce22e572e431b97b7a14fdf00992fbfb344937ba717eec793
Discussion
In general the answer to this is yes, it is inherent to all multi-party transactions, not to consolidation or WabiSabi in particular -> the privacy you gain decreases over time. An extreme example to understand: You make a transaction like this, then keep your coins for 100y. The probability of other parties keeping their coins for that long is close to 0, so an outside observer can reasonably think that all unspent outputs belong to the same entity.
Consolidation by itself in WabiSabi is usually not a problem, the OP is being misleading by spreading FUD to push his own narrative. Wasabi clients will always try to reduce the price of the privacy, so it will maximize the anonset gained per btc value of the output per sat spent in mining fee. So it can create small outputs, but never outputs smaller than the price it costs to create + immediately spend them (so never dust), always minimizing the costs of the global privacy enhancing process. This protocol works extremely well with high liquidity
Here, the OP took an example where 2 problems are met:
- The coordinator has a low liquidity
- The user made a really bad post-mix transaction, consolidating a huge % of the coordinator's liquidity (which is a privacy problem)
Those conditions are not favorable for good performance of the WabiSabi protocol.
Note that this user didn't use a public WabiSabi coordinator for his transactions, or at least not one advertised on Nostr tracked by our tracker https://liquisabi.com/