One unusually low SK Hynix trade sent the crypto contract down about 20%, triggering nearly $60 million in liquidations within two minutes.
Trade.xyz, a trading interface offering access to stock-linked perps on Hyperliquid, said it would compensate users after one unusually low trade in SK Hynix shares triggered nearly $60 million in liquidations.
The incident began on July 27, when Trade.xyz’s SK Hynix contract fell from $1,127 to approximately $920 after a single share traded in South Korea’s thin premarket session at roughly 30% below the previous close.
SKHXUSD price on Trade.xyz. Source: Trade.xyz
The later trades occurred at significantly higher prices. Yet, it was too late to save the traders, who had their positions closed automatically.
Nearly $60 million in long positions were liquidated within two minutes, according to data from Allium, while more than 900 users suffered an estimated $17.4 million in actual losses.
The Price Feed Worked as Designed
In a post on X from July 29, Trade.xyz asserted that the low price was a legitimate trade that had been executed as evidenced by the independent data providers. The system was designed to operate within the Korean pre-market venue, and hence the price feed fulfilled the protocol’s specifications. Trade.xyz wrote:
“The XYZ oracle was live in external pricing and tracking that venue, which serves as the primary Korean pre-market venue. The oracle system worked as intended according to its specification.”
Still, the company said it would “cover liquidation losses attributable to this anomaly.” It plans to announce eligibility requirements soon and expects to distribute payments “in the coming days,” though it described the reimbursement as “a one-time discretionary decision.”
The contract trades on XYZ, a perps venue built on the Hyperliquid network and accessed through Trade.xyz.
Under Hyperliquid’s HIP-3 system, XYZ is responsible for listing its markets and setting leverage limits, while Hyperliquid handles order matching, liquidations and settlement.
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