Trade.xyz has begun repaying traders who were liquidated following a sharp price drop in SK Hynix shares that caused $60 million in losses on its Hyperliquid perpetual contracts. The event unfolded on July 27 when a pre-market SK Hynix order in South Korea dropped the tokenized-stock contract nearly 19%, catching about 960 accounts off guard.
The glitch originated from traditional markets but rippled into on-chain derivatives, highlighting risks as tokenized perpetuals gain traction in crypto. The SK Hynix USDC-margined perpetual on Hyperliquid was the platform's largest, holding $638 million in open interest by July 30, according to Galaxy Research.
From Seoul Stock Price Shock to On-Chain Liquidations
On July 28, during South Korea’s NextTrade pre-market, one SK Hynix share plunged to 1,272,000 won ($868), nearly 30% below the previous close. Despite hitting the daily exchange limit, buyers pushed the price back up to 1.7 million won. The oracle integrated with trade.xyz passed this external price into the Hyperliquid market, triggering massive liquidations of longs due to the sudden value drop.
This incident exposes how tokenized stock contracts remain tethered to traditional market shocks, creating new challenges for DeFi platforms handling such assets. Traders affected by this event will receive compensation from trade.xyz, a move aiming to rebuild trust after this unexpected ripple effect. Meanwhile, on-chain markets continue expanding their footprint in bridging classic assets with crypto trading.
This content is for informational purposes and not financial advice.
