Machine-gun killer Kevan Thakrar decided to sue prison bosses claiming the damage left him “stressed”.
He also demanded recompense for the loss of “priceless” property, including photographs, letters and cranberry juice.
He is serving three life sentences for shooting three men dead over a £10,000 drug debt.
The 26-year-old claims possessions were damaged following a transfer from the high-security Frankland prison in County Durham.
Thakrar was moved after he stabbed three prison guards in the incident, which left two victims suffering from post-traumatic stress.
Originally Thakrar was awarded £10 to cover his loss. But he took his case to court and won compensation.
The total includes £500 because prison bosses failed to apologise.
On Facebook Thakrar expressed his delight at the payout but revealed he had considered sending the bailiffs around to collect the cash from Justice Secretary Chris Grayling.
He said: “Although it may have been a few months late, Grayling paid up. It is a shame though – I was quite looking forward to the bailiffs going into the Ministry of Justice.”
Prison officer Craig Wylde, 32, who lost eight pints of blood in the stabbing, dismissed the claim as “laughable”.
It is another case of the prisoner getting everything and the victims nothing. He is always trying it on
He added: “It is another case of the prisoner getting everything and the victims nothing. He is always trying it on.
"He has to complain about everything and thinks he’s a big man because he’s challenging the system.”
Thakrar was transferred from Frankland prison in 2010 after he barricaded himself in his cell.
He broke out of his cell and stabbed Mr Wylde.
He then chased guard Claire Lewis, shouting: “I’m going to kill you” before stabbing her in the back.
He was charged with the attempted murder but cleared by a jury at Newcastle Crown Court.
In the compensation case, a district judge said: “Had the defendants said promptly and sincerely to Mr Thakrar they deeply regretted the loss of his personal items and understood his distress, the loss would not have been aggravated in the way it has been.”
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