You really should amend 2016 to correctly reflect the ending inventory and to accurately report the gains and losses on the business.
The returns would then both be correctly filed.
One issue while unlikely could happen, say IRS (or State) looked at 2017 and corrected the return (reduced loss by $4K) and say when they did it the statue of limitations (three years for due date of return) had already expired on the 2016 return, you would be paying taxes on 2017 and not getting the benefit of the larger loss on 2016.
Many, many amended returns are filed each year, so don't let the amended return process worry you about an audit.
https://ttlc.intuit.com/replies/3288565
