On July 27, the SKHYNIX perpetual contract offered by Trade.xyz on Hyperliquid plummeted from $1,127.90 to $917.25 in seconds, triggering forced liquidations on nearly a thousand leveraged positions. The incident originated from an isolated transaction on the Korean pre-opening market NextTrade: a single SK Hynix share was traded at 1.272 million won, approximately 30% below the previous day’s close at 1.816 million won. Trade.xyz’s oracle faithfully relayed this aberrant price, even though it was functioning as designed. The incident generated approximately $57 million in liquidations, including $17.3 million in realized losses. Trade.xyz announced it would cover these losses while characterizing the measure as discretionary and one-time, with no commitment to repeat such action in the future.
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