Trade.xyz Covers Losses for Traders Hit by SK Hynix Price Anomaly

Trade.xyz has announced that it will cover eligible liquidation losses for traders affected by a price anomaly in its SKHYNIX contract. The contract, which tracks the South Korean chipmaker's stock price, saw its mark price drop from $1,127.90 to $917.25 on Monday at 23:01 UTC.

The issue occurred when an executed trade was relayed by multiple independent data providers, causing the oracle to feed incorrect prices into the contract's valuation. Trade.xyz acknowledged that traders' frustration and described the reimbursement as a 'one-time discretionary decision.'

The platform operates under Hyperliquid's HIP-3 framework, which allows builders to launch perpetual contracts tied to assets with external price feeds. The SKHYNIX contract is one of its most active markets, generating over $1.5 billion in 24-hour volume and holding nearly $600 million in open interest.

Trade.xyz stated that it will review how prices are formed during extreme market events and consider giving more weight to prices formed on its own order books, which now provide meaningful liquidity and market signals.