Trade.xyz to reimburse traders after SK Hynix perp drop

The operator of a popular on-chain perpetual contract for SK Hynix will reimburse eligible traders after a single, low-volume trade on a South Korean premarket exchange triggered a sharp price drop and a cascade of liquidations. Trade.xyz, which operates the market on the Hyperliquid blockchain, announced the compensation plan on July 29, 2026, following the incident late on July 28.

The disruption occurred at 23:01 UTC on July 28 when the mark price for the SK Hynix perpetual contract plummeted from 1,127.90 to 917.25, a drop of approximately 19%. Trade.xyz stated the move was caused by an executed trade on an external venue, identified in reports as the South Korean alternative exchange NXT, which was relayed by multiple independent data providers. The company confirmed its oracle, which converts the Korean won price of one SK Hynix share into U.S. dollars, functioned according to its published specifications.

The sudden mark price movement, used for margin accounting and liquidation decisions on Hyperliquid, forced the closure of leveraged positions. Preliminary on-chain analysis cited in reports estimated roughly 57 million in liquidations across nearly 1,000 accounts, with...