Trade.xyz, the operator of stock perpetual futures on Hyperliquid, announced on July 28 (local time) that it will compensate users affected by forced liquidations caused by a sharp drop in SKHYNIX (SK Hynix) mark price on July 27. The mark price fell from $1,127.9 to $917.25 at 23:01 UTC on July 27, triggering liquidations for long position holders. Trade.xyz stated in an X post that while the system operated as designed, the company understands user frustration and has decided to absorb liquidation losses from this anomaly as a discretionary measure. The incident occurred on Hyperliquid, a decentralized exchange platform where Trade.xyz operates perpetual futures contracts based on traditional stock assets.
SKHYNIX Mark Price Dropped from $1,127.9 to $917.25 on July 27
On July 27 at 23:01 UTC, the SKHYNIX mark price on Hyperliquid dropped from $1,127.9 to $917.25. Trade.xyz explained in its X post that the executed trade was relayed by multiple independent data providers, and the oracle was live in external pricing and tracking that venue. On July 28 at 08:00 Korean time, SKHYNIX traded at $927, down approximately 17.9% from $1,129 recorded one minute earlier at 07:59. The price recovered quickly after the drop, but the brief volatility period resulted in forced liquidations of long positions.
Trade.xyz Announces Compensation and Pricing System Improvements
Trade.xyz stated that the system functioned as designed, but the company fully understands the frustration of users who were liquidated. The company emphasized its commitment to market integrity and decided to absorb the liquidation losses caused by this anomaly. Compensation criteria and eligible users will be announced later. Trade.xyz clarified that this compensation is a one-time discretionary measure and does not establish a precedent for future similar cases. The company also announced plans to improve its pricing system to handle extreme market conditions (tail events). Trade.xyz stated it is reviewing methods to incorporate price signals from its own order book in addition to external exchange pricing.
Long Position Liquidations Reached $179,830 on July 28
According to CoinGlass data as of 09:30 on July 28, long position liquidations for SKHYNIX-based assets across all cryptocurrency exchanges in the past hour reached $179,830 (approximately 264.42 million Korean won). The liquidations occurred during the brief period of sharp price movement on Hyperliquid.
FAQ
What caused the SKHYNIX price drop on Hyperliquid on July 27?
On July 27 at 23:01 UTC, the SKHYNIX mark price dropped from $1,127.9 to $917.25 based on an executed trade relayed by multiple independent data providers. Trade.xyz's oracle was live in external pricing and reflected this price movement.
Will Trade.xyz compensate all users affected by the SKHYNIX liquidations?
Trade.xyz announced on July 28 that it will compensate users affected by forced liquidations caused by the July 27 price anomaly. The company stated that compensation criteria and eligible users will be announced later, and this is a one-time discretionary measure.
