Trade.xyz Covers $60M Losses After SK Hynix Flash Crash
Trade.xyz, a decentralized perpetuals exchange, will reimburse traders who were liquidated when its SK Hynix perpetual futures contract dropped 19% on July 27. The price of the contract fell from $1,128 to $917 at 23:01 UTC that day, according to the company.
The company attributed the drop to a single executed trade relayed by multiple independent data providers, which was tracked by the primary Korean pre-market venue.
Trade.xyz said its oracle system worked as intended and faithfully reported a real trade on a thin market. The decision to cover losses is a one-time discretionary action, rather than a commitment to do so again, with eligibility rules to follow and payouts expected within days.
The company will reassess how it sources prices, giving more weight to its own order books, which carry increasingly meaningful depth and signal in relation to external sources. Research has found that crypto perpetual futures often lead spot markets rather than follow them.