Trade.xyz Pays Out Compensation After SK Hynix Contract Price Plummets 19% in One Hour

Trade.xyz has paid out compensation to traders affected by a rare market event on July 27, when the mark price of its SK Hynix perpetual contract dropped 19% in just under an hour. The price plummeted from $1,127.90 to $917.25 at 23:01 UTC, forcing leveraged long positions below their maintenance-margin requirements.

The incident was triggered by a single executed transaction on a thin South Korean pre-market venue, which was relayed to multiple independent data providers and then processed through Trade.xyz's oracle under its existing pricing specifications. The external print moved quickly through the oracle before deeper liquidity restored the underlying market price.

Trade.xyz has distributed USDC compensation to eligible traders, with those owed less than 10,000 USDC receiving the full amount automatically without needing to submit a claim. Those owed more than 10,000 USDC received an initial 9,999 USDC payment and must contact Trade.xyz support by August 15 to complete additional due diligence and receive their remaining balance.

The platform has not disclosed the total compensation distributed or the number of qualifying accounts. In response to the incident, Trade.xyz is reviewing its reliance on external venues and may give more weight to price formation on its own order books during extreme moves.