SK Hynix Trade Sparks Crypto Derivative Chaos

Korea's SK Hynix shares dropped sharply on Tuesday, sparking a chain reaction in the crypto market.

The chipmaker's stock fell 30% below its previous closing price at the start of trading, triggering a rogue trade in the pre-market session.

This unusual transaction created problems for traders who had taken long positions in a derivative contract on the Hyperliquid exchange.

As the SK Hynix price on the contract dropped by 20%, nearly $60 million worth of long positions were closed within two minutes, resulting in $17.4 million of realised losses among over 900 users.

The developer of the contract, Trade.xyz, said it would cover liquidation losses linked to the anomalous part of the price move.