Trade.xyz to Reimburse Traders for SK Hynix Perp Liquidations on Hyperliquid

Trade.xyz said it will reimburse traders for liquidation losses tied to an abrupt pricing dislocation in its SK Hynix perpetual contract on July 27, an event that impacted nearly 1,000 leveraged positions on Hyperliquid. According to a preliminary review, the contract's mark price fell from $1,127.90 to $917.25, triggering a broad liquidation cascade. The move led to roughly $57 million in liquidations and about $17.3 million in realized losses. The Hyperliquid HIP3 operator team said the price move originated from an executed trade that was relayed by multiple independent data providers. They said the platform's oracle was tracking an external venue that carried the transaction, described as the main Korean premarket venue, and that the oracle functioned within its existing specifications. The team noted that the distorted mark price nonetheless forced liquidations before the underlying market recovered from the isolated print. Trade.xyz said it will compensate liquidation losses attributable to the anomaly. Eligibility criteria will be released soon, and distributions are expected to be completed within the coming days. The company characterized the reimbursement as a one-time, discretionary measure and said it does not set a precedent for future incidents. The firm added that the plan addresses the immediate financial impact but does not change the automated closure of leveraged positions that occurred when the oracle price dropped. Trade.xyz also said it will strengthen its pricing framework to reduce exposure to similar tail events, including a review of reliance on external venues and the assumptions used to build mark prices. The company said it is also considering placing greater weight on activity in its own order books.