Trade.xyz Covers $60 Million in Crypto Liquidations After Price Drop

Trade.xyz has announced that it will reimburse traders who were liquidated after its SK Hynix perpetual futures contract dropped by 19% on Monday, resulting in $60 million in crypto liquidations.

The company attributes the price drop to a single trade executed on a thin Korean pre-market venue. According to Trade.xyz, the oracle system worked as intended and faithfully reported a real trade that sharply moved the mark price.

Trade.xyz is revisiting its assumptions about external venues and will weigh price formation on its own orderbooks, which carry increasingly meaningful depth and signal in relation to external sources.