Premarket SK Hynix trade triggers Hyperliquid crash, traders lose $17.4 million
Business
A weird premarket trade in SK Hynix shares on Tuesday sent shockwaves through the crypto world.
The sudden price drop in Seoul triggered a 20% crash for related crypto contracts on Hyperliquid, wiping out nearly $60 million in long positions and leaving over 900 traders with $17.4 million in losses, according to Allium.
Trade.xyz promises to cover losses
Trade.xyz, which built the affected crypto derivative, has promised to cover these losses and says it will upgrade its pricing systems for better protection during wild market swings.
This whole mess highlights how risky round-the-clock leveraged trading can be, especially when underlying assets aren't even active.
The episode highlights the need for using more than one pricing source to help prevent future disasters like this.