Company behind AI trade that caused $60 million crypto liquidations to cover all losses

Onchain derivatives platform Trade.xyz announced it will completely reimburse traders who suffered heavy losses after its SK Hynix perpetual futures contract experienced a sudden nineteen percent flash crash. The severe disruption triggered roughly sixty million dollars in forced long liquidations across nearly one thousand leveraged accounts. The platform operates the specific market under Hyperliquid's specialized framework, which enables builders to deploy synthetic tokens tracked by external data feeds.

The market developer clarified that its underlying price oracle worked exactly as designed by accurately transmitting an executed transaction from an external South Korean pre-market venue. A single share changed hands at an anomalous thirty percent discount on a thinly traded overnight platform, a bad print that the oracle faithfully recorded and converted into US dollars. Because multiple independent data providers relayed this real transaction, the automated system immediately adjusted the contract's mark price accordingly.

Management emphasized that the massive compensation package represents a unique, one-time discretionary decision rather than an ongoing operational commitment. To prevent similar structural vulnerabilities during future extreme tail events, the engineering team plans to overhaul its core price formation methodology. The platform will soon adjust its algorithmic weighting to favor liquidity and price signals from its own deeply capitalized order books over external venues.