Trade.xyz, the operator of the Hyperliquid HIP-3 market, announced it will compensate traders for losses from a sudden drop in its SK Hynix perpetual contract on July 27. The mark price fell from $1,127.90 to $917.25, triggering about $57 million in liquidations and $17.3 million in realized losses. The price originated from an executed trade on a Korean pre-market venue, relayed by multiple independent data providers. The firm called the compensation a one-time discretionary measure and plans to review its oracle pricing system to prevent similar events.
Trade.xyz said it will cover liquidation losses linked to the collapse of its SK Hynix perpetual contract on July 27, affecting nearly 1,000 leveraged positions on Hyperliquid.
The mark price for the stock dropped from $1,127.90 to $917.25, causing a liquidation cascade that resulted in about $57 million in liquidations and roughly $17.3 million in realized losses, according to preliminary analysis. The team behind the Hyperliquid HIP-3 operator said the price originated from an executed transaction carried by several independent data providers. Its oracle was tracking an external venue that the platform described as the main Korean pre-market venue.
“On July 27 at 23:01 UTC, SKHYNIX mark price dropped from $1,127.9 to $917.25. This print was based on an executed trade which was relayed by multiple independent data providers,” Trade.xyz stated. The firm added that the oracle operated according to its existing specifications, but the resulting mark price caused liquidations before the underlying market recovered from the isolated print.
Trade.xyz outlined that it will reimburse liquidation losses attributable to the anomaly. The platform will announce eligibility requirements soon and expects to complete distributions within the coming days. The company described the compensation as a one-time discretionary measure and stressed that the decision does not guarantee reimbursements following similar incidents in the future.
The announcement addressed the immediate financial impact on traders but does not change how leveraged positions were automatically closed when the oracle price fell. The firm also plans to strengthen its pricing systems against similar tail events. The review will scope the platform’s reliance on external venues and the assumptions used when constructing mark prices. The team said it will also consider giving more weight to activity on its own order books.
