Trade.xyz Will Cover Losses From SK Hynix Liquidation Anomaly on Hyperliquid
Trade.xyz said it will cover liquidation losses linked to the sudden collapse of its SK Hynix perpetual contract on July 27, following an incident that affected nearly 1,000 leveraged positions on Hyperliquid.
Recall that the other day, the mark price for the stock dropped from $1,127.90 to $917.25. The move triggered a massive liquidation cascade, which caused about $57 million in liquidations with about $17.3 million in realized losses, according to preliminary analysis.
The team behind the Hyperliquid HIP-3 operator said the price originated from an executed transaction carried by several independent data providers. Its oracle was tracking an external venue responsible for the trade, which the platform described as the main Korean pre-market venue.
According to them, the oracle operated according to its existing specifications. However, the resulting mark price caused liquidations before the underlying market recovered from the isolated print.
On July 27 at 23:01 UTC, SKHYNIX mark price dropped from $1,127.9 to $917.25. This print was based on an executed trade which was relayed by multiple independent data providers. The XYZ oracle was live in external pricing and tracking that venue, which serves as the primaryโฆ
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