Trade.xyz Repays $60M in Crypto Longs After Stock Glitch

A trading glitch on trade.xyz resulted in $60 million worth of liquidations on Hyperliquid. The incident occurred when SK hynix stock prices fluctuated rapidly due to an incorrect order, causing a ripple effect across the cryptocurrency markets.

The SK Hynix perpetual product on trade.xyz is a tokenized-stock perpetual that tracks the dollar value of one share of SK hynix. When the pre-market time slot for NextTrade opened, the price dropped by 30%, but was later corrected to $868 per share. However, the mark price on trade.xyz continued to drop, eventually reaching a 18.7% decrease.

The incident led to approximately 960 accounts being liquidated, with long positions ranging from $57 million to $80 million. The company announced that it would repay traders whose losses did not exceed $10,000 automatically, while those who lost more had to apply for refunds.