Trade.xyz Will Cover Losses From SK Hynix Liquidation Anomaly on Hyperliquid
Trade.xyz has confirmed it will cover liquidation losses resulting from a sudden oracle price anomaly that affected the SK Hynix perpetual contract on Hyperliquid on July 27. The incident saw the mark price of SK Hynix drop from $1,127.90 to $917.25, triggering a cascade of liquidations that impacted nearly 1,000 leveraged positions. According to preliminary analysis, approximately $57 million in liquidations occurred, with realized losses totaling around $17.3 million.
The price discrepancy originated from an executed trade on an external Korean pre-market venue, which was tracked by multiple independent data providers. Trade.xyz stated that its oracle operated according to existing specifications, but the resulting mark price caused liquidations before the underlying market recovered from the isolated trade.
In response, Trade.xyz said it will reimburse liquidation losses attributable to the anomaly on a one-time discretionary basis. The platform will announce eligibility requirements soon and expects to complete distributions within the coming days. However, it stressed that this compensation does not guarantee reimbursements for similar incidents in the future.
Beyond the immediate financial relief, Trade.xyz plans to strengthen its pricing systems to guard against similar tail events. The review will examine the platform’s reliance on external pricing venues and the assumptions used when constructing mark prices. The team also said it will consider giving more weight to activity on its own order books.
The announcement addresses the immediate impact on traders but does not alter the automatic closure of leveraged positions triggered by the oracle price drop.