Key facts
- Perpetual futures tracking SK Hynix on Hyperliquid experienced a flash crash, dropping to $900.
- The contract quickly rebounded above $1,000.
- The flash crash occurred shortly before SK Hynix shares fell 15% in South Korean trading.
- The Kospi index also saw an 11% decline.
- Nvidia shares dropped 5% amid broader weakness in AI-related stocks.
Perpetual futures tied to South Korean chipmaker SK Hynix experienced a significant flash crash on the Hyperliquid decentralized exchange, dropping approximately 20% to $900 within a single minute before rapidly recovering above $1,000. This event occurred shortly before SK Hynix's shares faced substantial pressure in their home market, closing down 15% at 1,550,000 won ($1,762). The broader Korean market was also affected, with the benchmark Kospi index falling 11% and other major companies like Samsung Electronics and Hyundai Motor also declining.
The flash crash on Hyperliquid, a platform popular for trading derivatives on traditional assets, is attributed in part to thin overnight liquidity, a common occurrence between the close of U.S. markets and the opening of Asian markets. This period often sees lower trading volumes, making prices more susceptible to sharp fluctuations.
SK Hynix, a key supplier of high-bandwidth memory (HBM) chips essential for AI processors like those from Nvidia, has seen its stock price decline significantly this month, down nearly 48% from its late June peak. The weakness in AI-related stocks extended to Wall Street, with Nvidia shares falling 5% following a report suggesting the company might provide a substantial financial backstop for an OpenAI-backed data-center project.