TradeXYZ Repays $60M Losses After SK Hynix Perpetual Flash Crash

On July 27, 2026, an oracle pricing error triggered a flash crash in the SK Hynix perpetual contract on the Hyperliquid decentralized exchange. The event erased roughly $60 million in long positions, liquidating about 900‑960 trader accounts.

TradeXYZ, which controls the majority of Hyperliquid’s HIP‑3 volume, announced a repayment program on July 29. Victims with claims under $10,000 have been credited up to 9,999 USDC, while larger claims are under review with a target payout deadline of August 15. The program aims to restore confidence and address structural risk concerns about TradeXYZ’s market dominance.

The incident underscores the vulnerability of on‑chain derivatives that track tokenized stocks, as a single price discrepancy in South Korea’s traditional market cascaded into massive crypto liquidations. Hyperliquid pledged to improve its pricing and oracle mechanisms to better handle tail‑event volatility.