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Trade.xyz to reimburse $60M in liquidations after SK Hynix contract drops
The mark price on its SK Hynix perpetual fell about 19% from roughly $1,128 to $917 after a single pre-market trade on a thin Korean venue.
Trade.xyz said it will reimburse traders whose positions were liquidated after its SK Hynix perpetual futures contract dropped sharply, triggering about $60 million in liquidations. The company attributed the move to an outsized trade on a thin Korean pre-market venue, rather than any malfunction or manipulation in its systems, according to CoinDesk.
Trade.xyz said the mark price fell nearly 19% late on Monday, dropping from about $1,128 to $917 at 23:01 UTC on July 27. It said the price feed for the contract reflected a real executed trade relayed by multiple independent data providers, with the oracle reporting the move as intended.
The firm said its oracle functioned according to its specification, relaying external market data into the blockchain-based contract. It also described the reimbursement decision as a one-time, discretionary action, with eligibility rules expected to be published and payouts anticipated within days.
As part of the remedy, Trade.xyz said it plans to reassess how it sources prices, including giving more weight to its own order books. The company said research suggests crypto perpetuals can more accurately reflect certain spot market dynamics than traditional price formation methods, and it is now revisiting the assumptions behind external pricing venues.