At this point, the ones I’ve let down the most are my family.
The frequency with which you’ve heard this phrase recently is no less than that of “Do you believe in light?” or “You should stand in the light, not have the light stand there” two months ago.
Two short sentences captured a 180-degree market reversal and shattered hearts.
According to public data, South Korean stock SK Hynix has declined by more than half from its June high, with a market capitalization loss exceeding 100 quadrillion Korean won (approximately $800 billion). The South Korean KOSPI index has retraced about 30% from its peak and has already experienced 9 circuit breakers this year.occurred 9 circuit breakers.
On July 28, SK Hynitz dropped more than 10%. U.S. storage stocks also tumbled collectively, with SanDisk, Western Digital, Seagate, and Micron all falling between 8% and 13% on the day.
On July 29, SK Hynix plunged again, falling nearly 20% intraday, while the 2x leveraged long Hynix fund dropped over 30%, both recording their largest single-day declines in history.
A cross-market wipeout has unfolded. Extreme market conditions have exposed a wave of big names and traders from the crypto space—some who made their first fortune in crypto, others who had already achieved financial freedom. Now, all that remains are reflections and declarations of leaving the industry.
Half is market sentiment, half is human nature
Perhaps because the crypto market has been too quiet for too long, storage tokens have becomethe best destinationforactivefunds.
Dp Dapeng(@Dp520888)posted that from the end of last year to the first half of this year, the crypto market experienced a prolonged decline; Bitcoin finally caught a breath near $60,000, while during the same period, the stock markets of South Korea and the U.S. were propelled to new heights by the AI narrative, and major exchanges纷纷 connected stock trading to expand their markets.
He said he has seen many fellow crypto traders painfully sell off their crypto assets and heavily invest in Micron and SanDisk at high prices, only to lose over 30% afterward. Had that money remained in crypto, it would have at least held out until Bitcoin dropped to $40,000.
People accustomed to high volatility and tormented by profit opportunities for over half a year find it hard to resist chasing what looks like the juicier market. As @hexiecs put it, “Is there anyone who’s never bought storage stocks? I’d bow down to such a god.”
However,AI, GPU, and storage,these narrativeshave seen rapid rises and fallsincapital markets.5monthsNVIDIAstockpeaked,andhassinceerasedthis year'sgains,andrecentlyitstotal market caphasonce againbeensurpassedbyApple.Nowit'sstorage'sturn.
So, the beginning of this collapse was half market conditions and half human nature.
Why did this round fail?
People switching from the crypto world to the stock market often struggle to adapt.
On one hand, there’s the habit of using leverage. Many users start by going long with 2x leverage, or even higher leverage on chain-based perpetuals. The same candlestick that causes a drawdown in a spot account can trigger liquidation in a leveraged account.
To see how brutal this round of leveraged products has been, look at the Southern 2x Long Hynix ETF..This fund was once the largest single-stock leveraged product globally, peaking at around HK$130 billion. Since July, its value has dropped more than 80%, and its current size is just HK$25.6 billion. Another 2x long Samsung Electronics ETF has also fallen about 70% this month.
According to Hyperliquid data, on July 29, the 24-hour trading volume of the Hyperliquid-related contracts SKHX and SKHY reached a combined $1.765 billion, making them the platform's most actively traded asset, surpassing even BTC in popularity and trading volume.
On the other hand, there are differing rules. Stock markets themselves have multiple systems: U.S. stocks have after-hours trading, Korean stocks have NXT pre-market trading, A-shares have price limits, and Hong Kong stocks operate under yet another system—each with its own trading hours, price bands, and settlement rhythms.
When these underlying assets were bundled into on-chain perpetual contracts, the extreme rules from other platforms were bundled in as well. The price spike on Hyperliquid on July 28 is a prime example.
It was reported that on that day, only one share of SK Hynix traded in the pre-market session in Korea at approximately $868, about 30% lower than the previous day’s closing price, right near the lower price band limit for Korean stocks. This genuine trade of less than $900 was fed into the blockchain via an oracle, causing the SKHX perpetual contract to plummet approximately 18% within one minute.
According to on-chain data, $80 million was liquidated over the next four hours, and open interest dropped by approximately $150 million.
Trade.xyz stated that this price was synchronized from a real trade on the pre-market Korean session, and the oracle operated as per its specified parameters with no technical errors. Although Trade.xyz has decided to fully compensate for this liquidation loss in a one-time payment, it specifically clarifies that this does not constitute a guarantee for similar future scenarios.
Reflection after the bloodbath
After this wave of liquidation, several top influencers on X began to reflect. Many of their retrospectives focused on the strategies they’d relied on for years to make money—wondering whether those methods would still work in a new market.
Chuanmu(@xiaomustock) said that he saves regardless of whether he makes or loses money this year; Warren Buffett has survived so long in the capital markets precisely because he avoids leverage, never goes fully invested, and always keeps a large amount of cash on hand. Most people either stress over sleepless nights using leverage in pursuit of quick riches, or continue using leverage after making profits, leaving them anxious whether they’re winning or losing.
KOL EnHeng(@EnHeng456)reviewed his three major losses since entering the industry, with this latest storage market cycle being the most significant—combined drawdowns across several accounts exceeded ten million, fortunately he only traded spot and never used leverage.
He also noted that multiple traders, known for their strong judgment and diverse cognitive frameworks, entered the market one after another and ultimately suffered nearly uniform losses. When such a group reaches consensus on the same position yet is still collectively taught a lesson by the market, it indicates that these losses truly exceeded their prior understanding.
Self-proclaimed semiconductor liquidation of $20 millionZi Shi(@silverfang888) also said his biggest regret was leaving the crypto space to trade stocks. He views himself as merely a narrow-minded player in the crypto world who entered the U.S. stock market, where his opponents possess far greater knowledge and capital.
Many people fall into intense self-doubt after being liquidated, attributing their losses over the past few months to their limited experience and low awareness. This outburst of emotion serves as a reminder to everyone using leverage as an amplifier: the market never takes just your principal.
Others also offered comfort, reminding everyone that every trader experiences drawdowns like this several times—lost money is just tuition paid; as long as you’re still here and your spirit remains, there’s always another journey ahead.
In fact, very few people in the market can consistently win over time. Those who make it further are often the ones who can still recognize their own boundaries at every stage.