The Sydney student accused of going on a $4.6m spending spree after a banking error allegedly blew the cash on designer handbags, jewellery, a "selfie" camera, and luxury pillows.

Christine Jiaxin Lee, 21, is said to have realised in July 2014 Westpac had accidentally given her an unlimited overdraft, after opening the account just before she turned 18.

Over the next 11 months, the chemical engineering student allegedly siphoned off millions to other bank accounts, using the cash to go on wild spending sprees.

A Hermes Crocodile Birkin handbag.

In a staggering list obtained by The Sydney Morning Herald , Lee's spree allegedly included 13 Hermes scarves and dozens of handbags, including a Hermes Himalayan Crocodile Birkin that retails for $150,000.

On April 9 last year, two days after Westpac first noticed the blunder, she allegedly spent $220,200 at the Christian Dior Sydney store.

She returned the next day to spend a further $94,520, police said.

She is said to have splashed $1350 on a Chanel cashmere pillow, almost $9000 on a Cartier love bracelet and another $2500 on a pair of Christian Louboutin boots.

Many more transactions have still not been traced.

A Chanel cashmere pillow, which retails for $1350.

Westpac noticed the blunder in April last year, and immediately froze her account.

She returned $1 million worth of goods under court order, including a Cartier bracelet, 16 Christian Dior handbags and four Hermes handbags.

In March this year police issued an arrest warrant, after Lee repeatedly dodged debt collectors and court-ordered bankruptcy hearings.

She applied for an emergency passport and was arrested on May 4 at Sydney Airport, trying to board a flight to Malaysia.

Magistrate Lisa Stapleton said at Lee's first court appearance on May 5 she may not be charged with a criminal offence as the money was not illegally obtained.

Lee is free on bail.

"It isn't proceeds of crime. It's money we all dream of," Magistrate Stapleton said.

"She didn't take it from them. They gave it to her."

Even if she is not tried in a criminal court, Lee, who has been living in Australia on a student visa for five years, would still owe Westpac $3,486,612.07.