Trade.xyz will cover eligible liquidation losses for traders on its Hyperliquid perpetual contract tracking SK Hynix. The decision follows a price anomaly on Monday, July 27, that saw the contract's mark price fall nearly 19 percent.
The SKHYNIX contract's mark price dropped to $917.25 from $1,127.90 at 23:01 UTC. The move originated from an executed transaction on an external market, which was then relayed by multiple independent data providers.
Trade.xyz, an operator of on-chain perpetual markets on Hyperliquid, said its oracle system functioned as designed. The platform characterized the reimbursement as a one-time discretionary decision, acknowledging trader frustration.
The SK Hynix contract ranks as one of Hyperliquid's most active markets. On Wednesday, the contract recorded over $1.5 billion in 24-hour trading volume and held nearly $600 million in open interest.
Hyperliquid is a purpose-built layer-1 for on-chain perpetual futures running its own BFT consensus. Its native token is HYPE. Trade.xyz operates under Hyperliquid's HIP-3 framework, which enables builders to launch perpetual contracts linked to external price feeds.
Trade.xyz has accounted for over $22 billion of the first $25 billion in cumulative volume generated under the HIP-3 framework. The platform also launched an officially licensed S&P 500 perpetual contract using S&P Dow Jones Indices data.
SK Hynix is a South Korean chipmaker and a major producer of high-bandwidth memory used in artificial intelligence infrastructure. The Trade.xyz SK Hynix oracle tracks the U.S. dollar value of one SKHX common share, converting the underlying Korean won price using the prevailing exchange rate, as detailed in its documentation.
Hyperliquid uses the mark price to value positions for margin purposes and to determine when leveraged positions should be liquidated. That mark price fell sharply after the external print.
The incident affected nearly 1,000 leveraged positions. Trade.xyz did not disclose the total number of traders who will qualify for reimbursement or the aggregate amount it expects to distribute.
Trade.xyz plans to review how prices form during extreme market events and is considering giving more weight to prices formed on its own order books, citing their liquidity and market signals.
Eligibility requirements for the reimbursement will be announced soon. Distributions to qualifying traders are expected in the coming days.
