TradeXYZ to Compensate Users for Liquidation Losses After SK Hynix Price Plunge

TradeXYZ, a perpetual futures trading platform on Hyperliquid (HYPE), will compensate users for liquidation losses triggered by a sharp drop in SK Hynix's price.

TradeXYZ said July 28 that SK Hynix's mark price fell to $917.25 from $1,127.90 at 11:01 p.m. UTC on July 27. The price was transmitted through multiple independent data providers based on actual executed trades.

The platform said the XYZ oracle was properly tracking external prices at the time. It said the exchange used as the pricing reference was a major South Korean premarket exchange. The oracle system also functioned normally under its pre-set rules.

Still, the price plunge forced some users' positions into liquidation, prompting the company to cover the related losses. "The system worked as designed, but we fully understand that users would be dissatisfied that liquidations occurred," TradeXYZ said. "We will bear the liquidation losses caused by this abnormal price."

The company said it will disclose detailed compensation eligibility and standards later. Payments are set to be completed within the next few days. TradeXYZ added that the reimbursement is a one-time discretionary measure and does not guarantee similar compensation in future cases.

TradeXYZ also plans to improve its pricing system. It will review how it uses external exchange prices during extreme market swings and consider incorporating prices and liquidity from its own order book into the pricing process.