Trade.xyz will reimburse eligible traders who faced liquidation losses on its SK Hynix perpetual contract after the mark price on Hyperliquid dropped nearly 19 percent on Monday, July 27, falling from $1,127.90 to $917.25 at 23:01 UTC.
The sharp move originated from an executed transaction on an external market that was then relayed by multiple independent data providers. Trade.xyz's oracle, designed to track the U.S. dollar value of one SK Hynix common share by converting its Korean won price using the prevailing exchange rate, processed the external data and performed "as intended according to its specification," the platform said.
On Hyperliquid—a purpose-built Layer 1 for on-chain perpetual futures—mark price feeds directly determine margin valuations and liquidation triggers. A 19 percent swing in seconds is enough to cascade through leveraged positions regardless of the underlying asset's actual trading range.
The SK Hynix contract is one of Hyperliquid's most active markets. On Wednesday it generated more than $1.5 billion in 24-hour trading volume and carried nearly $600 million in open interest.
Trade.xyz described the reimbursement as a "one-time discretionary decision" and said it will review how prices are formed during extreme market events. As part of that review, the platform is considering giving more weight to prices formed on its own order books rather than external feeds—a shift that would reduce exposure to isolated external price prints and reflect the liquidity depth its internal markets now carry.
Trade.xyz operates under Hyperliquid's HIP-3 framework, which allows builders to launch perpetual contracts tied to assets with external price feeds. The platform has been the dominant volume source within that framework, accounting for more than $22 billion of HIP-3's first $25 billion in cumulative volume.
Its product lineup also includes an officially licensed S&P 500 perpetual contract using data from S&P Dow Jones Indices.
Trade.xyz has not disclosed the total amount it expects to distribute or the number of traders who will qualify. Eligibility requirements are expected soon, with distributions projected to begin in the coming days.
