One misplaced trade sparked a $60M crypto liquidation event on Trade.xyz
A single misplaced trade on a thin Korean pre-market venue just triggered one of the more striking crypto liquidation events in recent memory โ and now Trade.xyz is stepping in to cover the damage. The decentralized perpetuals exchange announced it will reimburse traders whose positions were forcibly closed after its SK Hynix perpetual futures contract plummeted roughly 19% in a matter of seconds on July 27, wiping out an estimated $60 million in leveraged positions.
Key takeaways
- Trade.xyzโs SK Hynix perpetual futures contract dropped from about $1,128 to $917 at 23:01 UTC on July 27, triggering a $60 million liquidation event.
- The price move was caused by a single share trading 29.96% below its prior close on South Koreaโs NextTrade pre-market, relayed faithfully by Trade.xyzโs price oracle.
- No system failure or manipulation was found; the oracle functioned exactly as designed.
- Trade.xyz will reimburse affected traders in a one-time discretionary action, with eligibility criteria still to be announced.
- Going forward, the exchange plans to place greater weight on its own order books when determining mark prices.
Massive Liquidation Triggered by a Single Trade in SK Hynix Perpetual Futures
At 23:01 UTC on July 27, the mark price of Trade.xyzโs SK Hynix perpetual futures contract collapsed from approximately $1,127.90 to $917.25 โ an 18.7% decline in an instant. That mark price is the reference figure the platform uses to calculate profits, losses, and whether to forcibly close a position. When it dropped that sharply, leveraged long positions had no chance to react.
โฆ Continue reading the full article at the original source below.
