Trade.xyz to cover SK Hynix perp liquidation losses after price anomaly

Key facts

• Trade.xyz will reimburse traders for losses.
• The losses amount to $60 million.
• The incident involved SK Hynix perpetual futures on Hyperliquid.
• The contract's price dropped by 19%.
• The price anomaly was caused by an outsized trade on a Korean pre-market venue.
• Trade.xyz's oracle functioned as designed.
• The reimbursement is a one-time discretionary action.

Trade.xyz announced it will reimburse eligible traders for $60 million in losses incurred during a flash crash of SK Hynix perpetual futures on the Hyperliquid platform. The incident occurred when the contract's mark price fell by nearly 19%, triggering liquidations for traders. Trade.xyz attributes the price anomaly to a single, outsized trade executed on a thin Korean pre-market venue. Despite this external price print, the platform's oracle functioned as designed. Trade.xyz emphasized that this reimbursement is a one-time discretionary action. The company stated it will cover losses for eligible traders who were impacted by this specific event.