SK Hynix: $57 Million Evaporates Due to 1 Share; Hyperliquid, 960 Accounts Liquidated in Chain Reaction

▲ Hyperliquid, SK Hynix / AI-generated image

An abnormal trade of 1 share of SK Hynix stock led to a chain reaction accident, liquidating 960 accounts on Hyperliquid.

According to cryptocurrency media outlet CryptoPotato on July 28 (local time), the SK Hynix-linked perpetual future xyz.SKHYNIX plummeted about 20% in an instant on Monday night. The price dropped from $1,131 to a low of $900, creating a significant divergence from prices on other cryptocurrency exchanges.

The starting point of the incident was a single share traded on Nextrade, a domestic alternative trading system. A sell order was placed at a price 30% lower than the previous closing price, just before the regular market opened. This order is presumed to be a trading error. Due to a lack of liquidity at the time, this single trade temporarily determined the price of SK Hynix.

The stock price recovered to market levels within 2 minutes. However, the XYZ oracle, used for Hyperliquid's price calculation, had already reflected the abnormal price. Within 4 seconds of Nextrade's opening, the oracle price plunged by 15.6%. Forced liquidations began approximately 2 seconds later.

Markets Alpha analyzed that 960 accounts incurred a total loss of $57 million due to the chain liquidations. The actual realized loss was tallied at $17.3 million. Automatic deleveraging was also activated. 100 short-selling accounts that were in profit realized a total gain of $10.8 million.

The maximum profit per account was $2.55 million, and the maximum loss was $2.05 million. The actual SK Hynix stock price also underwent an approximately 15% correction in the regular market a few hours later. Hyperliquid stated that XYZ distributes and operates the product in question. XYZ is investigating the incident but has not released a separate statement.

[Article Summary]

-An abnormal trade of 1 share of SK Hynix stock was reflected in the Hyperliquid oracle, leading to massive liquidations.

-The oracle price plummeted by 15.6% within 4 seconds of opening, resulting in $57 million in losses across 960 accounts.

-XYZ is investigating the cause of the incident and has not released a separate official statement.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*