Hyperliquid Flash Crash Wipes $57 Million in Liquidations After Single Share Trade Error

A flash crash on Hyperliquid saw $57 million in liquidations after a bad price feed from Nextrade's price oracle caused a cascade of liquidations. The SKHYNIX perpetual crashed by around 20% within seconds, dropping from $1,131 to as low as $900. This was triggered by an erroneous share trade placed on Korea's Nextrade exchange before trading opened, which briefly set the price of the stock at 30% below its previous closing price.

On-chain data indicates that this entire cascade stems from a single share trade placed from Seoul, which may have been placed accidentally. The price corrected back to market value within two minutes, but by that time, the XYZ oracle responsible for setting the price had already consumed and relayed the information.

The SKHYNIX oracle price plummeted 15.6% four seconds after Nextrade opened for trading, leading to liquidations starting just two seconds later. MarketAlpha calculated that 960 accounts lost $57 million in a liquidation cascade as a result of this oracle error, with $17.3 million in realized losses.