SK Hynix Flash Crash Hits Nextrade Again, Renewing Oracle Fears

The Seoul-listed memory chip giant SK Hynix experienced another flash crash on Nextrade, South Korea's alternative stock exchange. This was the second such incident in two weeks, with a similar glitch occurring on July 28.

During the pre-market session on Thursday, just 11 shares of SK Hynix changed hands at 1,168,000 won ($840) each, causing the price to briefly fall by about 30%. The stock quickly recovered, ending Nextrade's 50-minute pre-market session down around 2%.

The July incident triggered liquidations across more than 900 leveraged accounts on Hyperliquid, with nearly $60 million in positions wiped out and approximately $17.4 million in realized losses. While the current flash crash did not trigger a similar wave of liquidations, it highlighted a structural weakness in equity-linked crypto derivatives.

The episode renewed concerns over whether these products should rely on a single trading venue, particularly when that venue has limited liquidity. Thinly traded exchanges may not always provide reliable pricing data for products that can trigger large-scale liquidations.