Trade.xyz to Reimburse Traders Liquidated in $60M SK Hynix Crash

Trade.xyz, a decentralized perpetuals exchange, has announced that it will reimburse traders who were liquidated after one of its SK Hynix perpetual futures contracts crashed by 19% on July 27. The mark price for the contract fell from $1,128 to $917 at 23:01 UTC, according to Trade.xyz.

The company attributed the crash to a single executed trade relayed by multiple independent data providers on a thin Korean pre-market venue. It stated that its oracle system 'worked as intended' and that no manipulation occurred. The oracle system fetches data from outside points within a blockchain-based system.

Trade.xyz will cover the losses as a one-time discretionary decision, with eligibility rules to follow and payouts expected within days. The company is revisiting its assumptions about external venues and will weigh price formation on its own orderbooks, which it says carry increasingly meaningful depth and signal in relation to external sources.