Aunt allows teen to get drunk on school nights

My cousin is 16 and has been sneaking alcohol since she was 12. I’m much older and she confides in me a lot. My aunt made me swear that if she was ever doing anything dangerous that I should let her know since my cousin hides things from her. When she turned 15 she started sneaking out at night and would get black out drunk with her friends. I kept talking with her and telling her how dangerous that was especially since she lives in a remote area and not easily accessible to help or public transport. She did also have a bf around that time that my aunt didn’t know about and that she was sneaking out with. She would go to her friends house and leave her phone there so her location showed where she was and then would sneak out with her bf and come back in the morning. I felt that this was something my aunt needed to know bc anything could have happened to her and no one would know where she was. My aunts first reaction was that my cousin was lying to me to make herself seem cool, and started trying to poke holes and find excuses for everything I told her. After the way my aunt reacted I decided to distance myself a bit bc of her reaction and how she was handling things. It’s been a year since then. She has basically given my cousin free reign. Has sleepovers on school nights where before it was just weekends and knows my cousin drinks when she’s with her friends and doesn’t say anything. It’s gotten to the point where my aunt buys alcohol for my cousin and her friends when they are at her house. And I mean alcohol like a big bottle of vodka for her and her friend to drink in one night. She believes that supervised drinking at home will teach her responsibility and that she’s going to drink anyway and at least she’s not hiding it. My cousin now at 16 has a higher alcohol tolerance than most adults I know. I just feel like she’s leading my cousin down a bad path and she’ll end up drinking and driving and end up an alcoholic before she’s 20. My aunt brags about how much her daughter drinks and even laughed at her and called her a lightweight after my cousin threw up after a couple of drinks. And they openly talk about this stuff even in front of my kids. I don’t look at my aunt the same way anymore and don’t want her or my cousin around my own very young children. Not sure if I’m overreacting and being a prude?