Key facts
- Trade.xyz will cover $60 million in crypto liquidations.
- The liquidations were caused by a trading glitch.
- The glitch involved a 19% drop in the SK Hynix perpetual futures contract.
- A single, outsized trade on a Korean pre-market venue is identified as the cause.
- Trade.xyz is calling this a one-time discretionary action.
- Affected traders will be reimbursed.
Trade.xyz is stepping in to cover $60 million in cryptocurrency liquidations that resulted from a trading glitch. The incident occurred due to an artificial intelligence-driven trading strategy that caused a significant price fluctuation in the SK Hynix perpetual futures contract. The contract experienced a sharp 19% drop, leading to the liquidations. Trade.xyz has identified a single, outsized trade executed on a thin Korean pre-market venue as the primary cause of the anomaly. The exchange emphasized that this reimbursement is a one-time, discretionary decision. This action aims to mitigate the financial impact on traders who were affected by the unexpected market movement.