$60M in Liquidations Prompted by SK Hynix Price Anomaly on Trade.xyz

Trade.xyz, an interface for trading stock-linked perpetual contracts on Hyperliquid, is covering losses from nearly $60 million in liquidations after a single unusual trade sent its SK Hynix contract plummeting by 20%.

The incident occurred on July 27 when the SK Hynix contract fell from $1,127 to around $920 due to a single share trading at roughly 30% below the previous close in South Korea's thin premarket session.

Despite later trades occurring at significantly higher prices, it was too late for traders who had their positions automatically closed, resulting in nearly $60 million in long positions being liquidated within two minutes. According to data from Allium, over 900 users suffered an estimated $17.4 million in actual losses.

Trade.xyz has stated that the low price was a legitimate trade and that its oracle system worked as intended according to its specification. However, the company is still planning to cover liquidation losses attributable to this anomaly, with eligibility requirements for reimbursement to be announced soon.