diff --git a/default.nix b/default.nix
index 0fac1a2c969..441c9816d1d 100644
--- a/default.nix
+++ b/default.nix
@@ -576,7 +576,7 @@ rec {
     nixpkgs.rustPlatform.buildRustPackage {
       name = "ic-wasm";
       src = nixpkgs.sources.ic-wasm;
-      cargoSha256 = "sha256-iGCju0JG+jkysmDAeTfjNCYaSfg7N3Qqq8HpPlRHMgU=";
+      cargoSha256 = "sha256-qw1MwjlhGftN9k2sOjlAYo9rDRvHnf0qYQFPHMu2v74=";
       doCheck = false;
     };
 
diff --git a/nix/sources.json b/nix/sources.json
index 5a7e3583795..fddd2981f48 100644
--- a/nix/sources.json
+++ b/nix/sources.json
@@ -52,10 +52,10 @@
         "homepage": null,
         "owner": "dfinity",
         "repo": "ic-wasm",
-        "rev": "496f63f6854b4867b72e961c2e13fc9b82543700",
-        "sha256": "0z9mwmswa8f86hzdn3jm6b1rv2bqyalb9ai30s7qj8wvrb04spl8",
+        "rev": "0cc218f2c6d25a143371766f21243b3af0465ea7",
+        "sha256": "0y38kqjm5wddv93h0y1azyxknj8apff9pi6cs5x76s9h6pb9ys6g",
         "type": "tarball",
-        "url": "https://github.com/dfinity/ic-wasm/archive/496f63f6854b4867b72e961c2e13fc9b82543700.tar.gz",
+        "url": "https://github.com/dfinity/ic-wasm/archive/0cc218f2c6d25a143371766f21243b3af0465ea7.tar.gz",
         "url_template": "https://github.com/<owner>/<repo>/archive/<rev>.tar.gz"
     },
     "libtommath": {
diff --git a/test/run.sh b/test/run.sh
index fbd5bf6bcc7..7ef28a30bcb 100755
--- a/test/run.sh
+++ b/test/run.sh
@@ -351,7 +351,7 @@ do
         then
           run comp $moc_with_flags --hide-warnings --map -c $mangled -o $out/$base.wasm
           if [ $HAVE_ic_wasm = yes ]; then
-            run opt ic-wasm -o $out/$base.opt.wasm $out/$base.wasm shrink --optimize O3 --keep-name-section
+            run opt ic-wasm -o $out/$base.opt.wasm $out/$base.wasm optimize O3 --keep-name-section
           fi
         else
           run comp $moc_with_flags -g -wasi-system-api --hide-warnings --map -c $mangled -o $out/$base.wasm