Trade.xyz announces compensation for traders affected by SK Hynix perpetual contract price irregularity
While maintaining its oracle functioned correctly, Trade.xyz plans to compensate qualifying traders following an external SK Hynix price anomaly that triggered a mark price decline of approximately 19%.
An operator of onchain perpetual markets built on Hyperliquid, Trade.xyz, has announced plans to reimburse qualified traders who experienced liquidation losses following a price irregularity that impacted its perpetual contract for SK Hynix, the South Korean semiconductor manufacturer known for producing high-bandwidth memory used in artificial intelligence applications.
According to Trade.xyz, the mark price for the SKHYNIX contract experienced a sudden drop from $1,127.90 down to $917.25 at precisely 23:01 UTC on Monday following an executed trade that was reported by several independent data providers. The platform stated that qualification criteria for reimbursement will be revealed shortly, with compensation payouts anticipated within the coming days.
The perpetual contract for SK Hynix represents one of the most actively traded markets on Hyperliquid. As of Wednesday, data from Hyperliquid indicated the contract had accumulated more than $1.5 billion in trading volume over a 24-hour period and maintained approximately $600 million in open interest as of the time of publication.
In its statement, Trade.xyz explained that its oracle had been monitoring the external trading venue serving as the principal South Korean pre-market source and had "worked as intended according to its specification." The platform recognized the frustration experienced by traders and characterized the compensation decision as a "one-time discretionary decision," while noting it would examine how price formation occurs during periods of extreme market volatility.
The number of traders who will meet the qualification requirements for reimbursement was not revealed by the platform, nor did it disclose the aggregate sum it anticipates distributing.
How the anomaly reached the perpetual market
According to Trade.xyz, the sudden price movement stemmed from a transaction executed on an external marketplace rather than originating from its internal order book. The oracle system for SK Hynix calculates the US dollar value of a single SKHX common share through conversion of the underlying Korean won price using the current exchange rate, as outlined in the platform's documentation.
The external price data was fed into the oracle system and played a role in the contract's mark-price fluctuation. Hyperliquid employs the mark price mechanism to calculate position values for margin requirements and to establish when leveraged positions meet liquidation thresholds.
Looking forward, the platform indicated it is evaluating the possibility of assigning greater weight to prices established on its internal order books, which it stated now offer substantial liquidity and reliable market signals.
The Trade.xyz platform functions within Hyperliquid's HIP-3 framework, a structure that enables developers to create perpetual contracts linked to assets utilizing external price feed sources.
Trade.xyz was responsible for generating over $22 billion of the initial $25 billion in total cumulative volume for HIP-3 and subsequently introduced an officially licensed perpetual contract for the S&P 500 utilizing data from S&P Dow Jones Indices.