SK Hynix Derivatives Liquidation Wipe Out $17.4M as Market Sees Abnormal Price Plunge

A $60 million position in SK Hynix's stock was forced to liquidate on Hyperliquid, a virtual asset derivatives exchange, due to an abnormal low-priced sale of SK Hynix stock in the premarket.

The sale occurred just before the opening of the Seoul Stock Exchange regular market on March 28th and resulted in a price plunge of about 30% from the previous day's closing price. The price immediately recovered to normal levels, but the 24-hour virtual asset market did not wait.

In just two minutes, the price of indefinite futures contracts linked to SK Hynix's stock price plummeted by about 20%, forcing a domino effect in which positions of crypto traders who used high leverage were forced to liquidate one after another.

According to Alium, an on-chain data analysis platform, over 900 users suffered actual confirmed losses totaling $17.4 million due to the accident.

The incident highlights the vulnerability of price distortions outside regular markets and the need for more robust screening systems in virtual asset derivatives markets.