trade.xyz repays traders after a stock glitch erased $60M in crypto longs
The trading platform trade.xyz has started to repay traders whose leveraged trades were cancelled after a single wrong SK hynix order in South Korea, which later led to around $60 million in long liquidations on Hyperliquid. This situation shows how one mistake in the traditional stock market can easily carry over to the world of on-chain derivatives, especially now that tokenized-stock perpetuals are becoming a bigger part of crypto trading.
The payouts, confirmed by trade.xyz on Aug. 1, resolve a pricing incident that unfolded on July 27. The market at the center of the event, a USDC-margined SK Hynix perpetual, was far from niche. According to Galaxy Research, it was the largest builder-deployed market on Hyperliquid, with $638 million in open interest as of July 30.
How one share in Seoul reached an onchain order book
The chain of events started in South Koreaโs conventional stock market. Galaxy Research expert Will Owens stated that when the pre-market time slot of NextTrade started at 8:00 in the morning on July 28, one share of SK hynix was worth 1,272,000 won (around $868), which is around 30% less than the previous price. Although this price met the daily limit imposed by the stock exchange, buyers entered the market, and the price started to rise to almost 1.7 million won within a couple of minutes.
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