Trade.xyz announces compensation for traders affected by SK Hynix perpetual contract price irregularity
While Trade.xyz maintains its oracle functioned according to specifications, the platform has committed to compensating qualified traders following an external SK Hynix price feed that caused the contract's mark price to plummet by nearly 19%.
Trade.xyz, a platform operating onchain perpetual markets on Hyperliquid, has announced it will compensate qualified traders for liquidation losses following a price irregularity that affected its perpetual contract monitoring SK Hynix, the South Korean semiconductor manufacturer specializing in high-bandwidth memory production for artificial intelligence applications.
According to Trade.xyz, the SKHYNIX contract experienced a mark price drop from $1,127.90 to $917.25 at 23:01 UTC on Monday following an executed transaction that was reported by several independent data providers. The platform stated that qualification criteria will be released shortly, with payouts anticipated within the coming days.
The SK Hynix perpetual contract represents one of Hyperliquid's most heavily traded markets. According to Hyperliquid data on Wednesday, the contract recorded 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.
Trade.xyz explained that its oracle was monitoring the external trading venue utilized as the principal South Korean pre-market source and had "worked as intended according to its specification." The platform recognized trader concerns and characterized the compensation as a "one-time discretionary decision," stating it would examine how pricing is established during severe market disruptions.
The company has not revealed the number of traders who will meet qualification standards or the total compensation amount it anticipates distributing.
How the anomaly reached the perpetual market
Trade.xyz indicated the dramatic price movement stemmed from a completed transaction on an external trading venue rather than originating from its internal order book. According to its documentation, the platform's SK Hynix oracle monitors the US dollar equivalent of a single SKHX common share through conversion of the underlying Korean won price using the current exchange rate.
The external transaction data was incorporated into the oracle and played a role in the contract's mark-price movement. Hyperliquid utilizes the mark price for position valuation in margin calculations and to establish when leveraged positions face liquidation.
The company indicated it is evaluating whether to assign greater weight to prices established through its internal order books, which it noted currently offer substantial liquidity and reliable market indicators.
Trade.xyz functions within Hyperliquid's HIP-3 framework, a system that enables developers to create perpetual contracts linked to assets utilizing external price feeds.
The platform was responsible for over $22 billion of the initial $25 billion in aggregate volume generated under HIP-3 and subsequently introduced an officially licensed S&P 500 perpetual contract utilizing data from S&P Dow Jones Indices.