Trade Anomaly Triggers $57M in Liquidations, Trade.xyz to Reimburse Affected Traders

A trade anomaly on Hyperliquid caused by an executed transaction led to massive liquidations on SK Hynix perpetual contracts, affecting nearly 1,000 leveraged positions. The sudden drop in mark price from $1127.90 to $917.25 on July 27 triggered a cascade of liquidations, resulting in approximately $57 million in losses with about $17.3 million in realized losses.

Trade.xyz has announced that it will cover the losses attributed to the anomaly and review how external prices enter its oracle. The platform's team stated that they will reimburse affected traders but emphasized that this is a one-time discretionary measure, not a guarantee for future similar incidents.

The company also plans to strengthen its pricing systems against similar tail events by reviewing its reliance on external venues and considering giving more weight to activity on its own order books. Trade.xyz expects to complete distributions within the coming days and will announce eligibility requirements soon.