My wife made a corrective distribution of a Roth IRA, because we were ineligible, due to income. The return of contribution included a related loss, so we actually got back less than the amount she contributed.
The IRS instructions for Form 8606 say "Also include the related earnings on your 2023 Form 1040, 1040-SR, or 1040-NR, line 4b." Does this mean that losses can reported as a negative number? Seems fair, but I don't know what the rules are.
