A single abnormal order on NXT, a South Korean alternative exchange, undervalued SK Hynix shares at 1,272,000 won against a prior close of 1,785,000 won. The SK Hynix perpetual contract on Hyperliquid, which feeds this price without filter, dropped 17.9%, liquidating $57.4 million in long positions across 960 accounts on July 28. The market operated on cross margin, amplifying losses. The SK Hynix contract targeted the same asset and leverage as regulated South Korean products but without any circuit breaker. Market operator Trade.xyz announced voluntary compensation, while the 500,000 HYPE tokens in collateral ($27.4 million) are burned upon slashing rather than redistributed to affected traders.
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