Trade.xyz to Cover Losses After SK Hynix Price Glitch

Trade.xyz will cover eligible liquidation losses after the mark price of its SK Hynix perpetual on Hyperliquid fell from $1,127.90 to $917.25 at 23:01 UTC on Monday. The platform traced the drop to an executed trade on an external venue that was relayed by multiple independent data providers into its price oracle.

The oracle converts the underlying Korean won quote into U.S. dollars using the prevailing exchange rate to calculate the value of one SK Hynix share. Hyperliquid uses that mark price to value positions for margin and to determine when leveraged positions should be liquidated.

Trade.xyz stated the oracle “worked as intended according to its specification” and acknowledged trader frustration. The platform described the reimbursement program as a “one-time discretionary decision,” adding that eligibility criteria will be published soon and distributions are expected in the coming days. No information was provided on how many traders will qualify or the total amount to be reimbursed.

The SK Hynix perpetual ranks among Hyperliquid’s most active contracts. At the time of reporting, the contract showed more than $1.5 billion in 24-hour trading volume and nearly $600 million in open interest. The rapid mark-price change led to automatic liquidations for some leveraged positions.

Trade.xyz operates under Hyperliquid’s HIP-3 framework, which allows builders to launch perpetual contracts tied to assets that rely on external price feeds. The operator accounted for more than $22 billion of HIP-3’s first $25 billion in cumulative volume and later launched a licensed S&P 500 perpetual using S&P Dow Jones Indices data.

The platform is considering giving greater weight to prices formed on its own order books, which it said now provide meaningful liquidity and clearer market signals. Trade.xyz also plans to review how prices are formed during extreme market events and may adjust rules to limit the influence of outlier prints on highly traded contracts.

Market participants will watch the forthcoming eligibility announcement and any changes to pricing methodology, including whether Hyperliquid adjusts oracle weighting or liquidation parameters.