Trade.xyz Catches the Fall: $60M Liquidations Prompt Compensation Pledge

Trade.xyz has announced that it will cover losses resulting from nearly $60 million in liquidations triggered by an unusually low trade in SK Hynix shares on July 27. The incident occurred when a single share traded at around 30% below the previous close, causing the contract to drop approximately 20% within two minutes.

The trades were executed through Trade.xyz's interface offering access to stock-linked perpetual contracts on Hyperliquid. According to data from Allium, nearly $60 million in long positions were liquidated within two minutes, resulting in an estimated $17.4 million in actual losses for over 900 users.

In a statement, Trade.xyz asserted that the low price was a legitimate trade, citing independent data providers and the protocol's specifications. The company emphasized that its oracle system worked as intended, tracking prices from South Korea's primary pre-market venue.