\n<\/p>\n
\n\t\t\t\t\t\t\t\t\tAn erroneous share trade on Korea\u2019s Nextrade exchange fed bad price info into Hyperliquid\u2019s third-party price oracle, liquidating 960 accounts in seconds.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
The xyz.SKHYNIX perpetual on Hyperliquid crashed around 20% almost instantly late on Monday night, dropping from $1,131 to as low as $900, completely decoupling from pricing elsewhere on crypto exchanges.<\/p>\n
On-chain data indicates that the entire cascade stems from a single share trade placed from Seoul.<\/p>\n
It appears that during the pre-market window before trading opened on the South Korean Nextrade exchange, there was an order to sell stock for major chip manufacturer SK Hynix placed 30% below the previous closing price. This order may have been placed by accident.<\/p>\n
With thin pre-market liquidity, there were no competing orders on Nextrade at that moment, and that single trade briefly set the price of the stock on that exchange.<\/p>\n
The price corrected back to market value within two minutes, but by that time, the XYZ oracle responsible for setting the price for this stock on Hyperliquid<\/a> had already consumed and relayed the information.<\/p>\n Just four seconds after Nextrade opened for trading, the SKHYNIX oracle price plummeted 15.6%, and liquidations began about 2 seconds later.<\/p>\n On Hyperliquid, users were betting on the price of the semiconductor stock using leverage. X.com user MarketAlpha calculated that 960 accounts lost $57 million in a liquidation cascade as a result of this oracle error, with $17.3 million in realized losses.<\/p>\n Today, a single share sale triggered millions of dollars in liquidations on Hyperliquid.<\/p>\n At 11:00 pm UTC on July 27, $SKHYNIX<\/a> suffered a flash crash on Hyperliquid, falling roughly 20% within seconds before rapidly recovering.<\/p>\n The entire cascade began with a single share sold\u2026 pic.twitter.com\/quFIo2o1Lc<\/a><\/p>\n \u2014 Markets Alpha (@MarketsAlpha) July 28, 2026<\/a><\/p>\n<\/blockquote>\n The backstop then triggered auto-deleveraging against profitable short positions, with $10.8 million in gains realized across 100 accounts. The largest gains and losses for individual accounts were $2.55 million and $2.05 million, respectively. Surprisingly, the flash crash mimicked a real stock price correction of around 15%, which took place hours later on the open market.<\/p>\n Hyperliquid staff have pointed out that the exchange is permissionless and that SKHYNIX is deployed and operated by XYZ, which is reportedly investigating the issue but has not released a statement.<\/p>\n <\/p><\/div>\nFreefall: The Final Figures<\/h2>\n
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