The mark price of Trade.xyz's SKHYNIX perpetual contract dropped to $917.25 from $1,127.90 at 23:01 UTC on Monday, July 27. The nearly 19 percent decline resulted from an executed trade relayed by multiple independent data providers, triggering liquidations for nearly 1,000 leveraged positions on Hyperliquid.

Trade.xyz, an operator of on-chain perpetual markets built on Hyperliquid, said it will reimburse eligible traders for those liquidation losses. The company described the repayment as a "one-time discretionary decision" and acknowledged trader frustration.

The SK Hynix perpetual is an active market on Hyperliquid. On Wednesday, the contract generated over $1.5 billion in 24-hour volume and held approximately $600 million in open interest. SK Hynix is a South Korean chipmaker and a primary producer of high-bandwidth memory for AI applications.

Trade.xyz's oracle, which tracks the SKHYNIX contract, was designed to follow an external venue used as the primary South Korean pre-market. The platform said its oracle "worked as intended according to its specification" despite the price anomaly.

The sharp price move originated from a transaction on that external market, not from Trade.xyz's own order book. The oracle converts the underlying Korean won price of one SK Hynix common share to its U.S. dollar value using the prevailing exchange rate, feeding that print directly into the mark price used for margin and liquidation calculations.

Trade.xyz said it would soon announce specific eligibility requirements for reimbursement, with distributions to qualifying traders expected in the coming days. The platform did not disclose the total amount it anticipates distributing.

Trade.xyz operates under Hyperliquid's HIP-3 framework, which allows builders to launch perpetual contracts tied to assets that rely on external price feeds. Trade.xyz has accounted for more than $22 billion of HIP-3's initial $25 billion in cumulative volume.

The platform has also launched an officially licensed S&P 500 perpetual contract using data from S&P Dow Jones Indices.