In the early hours of December 22, 1965, the Liberian cargo ship SS Papadiamandis ran aground off the western coast of Flores Island, near Fajã Grande and approximately half a nautical mile southwest of the Albarnaz lighthouse.

The ship was a large vessel, originally built in 1944 by The Kaiser Company shipyards in Portland, Oregon, USA. It had a displacement of 14,300 tons and measured 180.4 meters in length. At the time of its construction, it was christened the SS Rainier.

According to historical records, the vessel served with the American forces during World War II and later with the French during the Indochina War. Over time, it changed ownership several times and sailed under various names: Rainier, Ardeshir, Langeais, and Caribbean Wave.

In 1963, the ship was purchased by Crestview Shipping Co., a company registered in Monrovia, Liberia. It underwent significant refurbishments in Hamburg, Germany, and was renamed the SS Papadiamandis.

On its final voyage, the vessel was traveling from New Orleans to Hamburg, under the command of Captain Constantino Paulis, carrying a cargo of corn and soybeans. As it approached Flores Island, the crew reportedly sighted the Albarnaz lighthouse to the north of the island but mistook its light for that of the Ponta das Lajes lighthouse, located on the southern end of the island.

This navigational error proved critical. As a result of the misidentification, the Papadiamandis ran aground on the rugged western coast of Flores, near Fajã Grande.

Eyewitness accounts describe the vessel as being:

"Wedged on a shoal, partially covered by rough seas,"

—suggesting that the ship was beyond saving, despite the dispatch of both naval and aerial rescue teams from other islands, including the NRP Fogo of the Portuguese Navy.

All thirty-one crew members of the SS Papadiamandis were rescued. Twenty-eight were brought to the town of Santa Cruz das Flores, where they were housed in private residences, as no hotels existed on the island at the time. The remaining three crew members were rescued by a German vessel that happened to be in the area and had approached to offer assistance.

Today, the wreckage of the Papadiamandis lies at depths ranging between 25 and 45 meters, which makes its identification, documentation, and classification difficult for maritime archaeologists and divers.

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