Trade.xyz has committed to reimbursing users who suffered liquidation losses after a sharp price anomaly in the SK Hynix perpetual market on Hyperliquid. The event occurred at 23:01 UTC on July 27, when the mark price for SKHYNIX plummeted from $1,127.90 to $917.25 — an 18.7% drop — triggering forced closures of leveraged long positions. On-chain tracker Lookonchain estimated over $80 million in liquidated SKHX positions, while other sources reported roughly $60 million. Trade.xyz has not confirmed the total amount but stated it will cover all eligible losses attributable to the anomaly.
The price crash was traced to a single share of SK Hynix that traded at 1.272 million won on South Korea’s NextTrade (NXT) pre-market session on July 28, 29.96% below the prior close of 1.816 million won. The thin pre-market liquidity and continuous matching system allowed this one print to establish an executable market price. Within two minutes, the stock returned to the 1.7 million won range. The underlying stock later closed the regular Seoul session at 1.55 million won, down 14.65%, but still far above the isolated NXT print.
Trade.xyz’s oracle, which tracked the NXT venue as part of its published design under Hyperliquid’s HIP‑3 framework, relayed the executed trade price, triggering the liquidation cascade. The company stated that multiple independent data providers relayed the trade, and its oracle behaved according to specification even though the price did not represent a deep or durable market. Hyperliquid confirmed that the market was independently deployed and operated by Trade.xyz.
In its announcement, Trade.xyz framed the reimbursement as a one‑time discretionary decision, not a promise of similar action in future disruptions. Exact eligibility criteria, distribution dates, and whether claims are automatic remain undisclosed, with further details promised in the coming days. Meanwhile, Trade.xyz is accelerating a review of its pricing controls to better account for tail‑event risks and will place greater emphasis on its own order‑book liquidity. NextTrade is also preparing a static volatility interruption for September that would switch trading to a two‑minute call auction after sharp moves.
