Trade.xyz to cover SK Hynix perp liquidation losses tied to price anomaly Trade.xyz said its oracle worked as designed but will reimburse eligible traders after an external SK Hynix price print caused the contract’s mark price to fall nearly 19%.

Trade.xyz, an operator of onchain perpetual markets on the Hyperliquid platform, announced it will reimburse eligible traders for liquidation losses resulting from a price anomaly affecting its contract tied to SK Hynix, a South Korean semiconductor company. The anomaly caused the contract’s mark price to plummet from $1,127.90 to $917.25 at 23:01 UTC on a recent Monday. This unusual price drop followed an executed trade on an external market that was relayed by multiple independent data providers used by Trade.xyz’s oracle system.

The SK Hynix perpetual contract is among Hyperliquid’s most actively traded markets, having recorded over $1.5 billion in trading volume over 24 hours and holding nearly $600 million in open interest at the time of reporting. Trade.xyz clarified that its oracle functioned as designed, tracking the underlying Korean won price of SK Hynix shares converted into U.S. dollars using prevailing exchange rates, with data sourced primarily from a South Korean pre-market venue. However, the external price feed contributed to the sharp mark price drop, which directly influenced margin valuations and triggered leveraged position liquidations.

Though the precise number of traders eligible for reimbursement and the total compensation amount have not been disclosed, Trade.xyz described the reimbursement as a “one-time discretionary decision” made in response to trader frustrations. The platform indicated it plans to announce eligibility criteria soon and anticipates distributing reimbursements in the near future. Additionally, Trade.xyz stated it will review its price formation methods during extreme market events and is considering placing greater emphasis on prices formed on its own order books, which it believes now provide meaningful liquidity and market signals.

Trade.xyz operates under Hyperliquid's HIP-3 framework, which allows the launch of perpetual contracts tied to assets with external price feeds. The platform has accounted for significant trading volume under this framework, including more than $22 billion of the first $25 billion in cumulative volume, and it has also launched a licensed S&P 500 perpetual contract using official data from S&P Dow Jones Indices. This episode highlights the challenges and complexities in using external price feeds for onchain derivatives markets, especially during periods of abnormal price movements.