Trade.xyz, an operator of on-chain perpetual markets built on Hyperliquid, will cover eligible liquidation losses following a price anomaly that hit its SK Hynix contract. The mark price dropped nearly 19 percent, falling from $1,127.90 to $917.25 at 23:01 UTC Monday.
The move originated from an executed transaction on an external market. Multiple independent data providers relayed that price print, feeding into the oracle that tracks SK Hynix, a South Korean chipmaker known for high-bandwidth memory production.
The SK Hynix contract is one of Hyperliquid's most active markets. On Wednesday it generated over $1.5 billion in 24-hour trading volume and held nearly $600 million in open interest at the time of reporting.
Trade.xyz said its oracle worked as intended. The platform tracks the U.S. dollar value of one SK Hynix common share by converting the underlying Korean won price using the prevailing exchange rate.
Despite the oracle functioning correctly, Trade.xyz described the reimbursement as a one-time discretionary decision. The company acknowledged trader frustration and plans to announce eligibility requirements soon, with distributions expected in the coming days.
Hyperliquid, a purpose-built Layer 1 for on-chain perpetual futures, uses the mark price to value positions for margin purposes—determining when leveraged positions are liquidated and triggering the losses for affected traders.
Trade.xyz said it will review how prices are formed during extreme market events and is considering giving more weight to prices formed on its own order books. The platform said its order books now provide meaningful liquidity and market signals.
Trade.xyz operates under Hyperliquid's HIP-3 framework, which allows builders to launch perpetual contracts tied to assets with external price feeds. Trade.xyz 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 S&P Dow Jones Indices data.
