{"id":205442,"date":"2026-07-28T13:04:37","date_gmt":"2026-07-28T13:04:37","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=205442"},"modified":"2026-07-28T13:04:37","modified_gmt":"2026-07-28T13:04:37","slug":"one-bad-price-960-liquidations-inside-sk-hynix-flash-crash-on-hyperliquid","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=205442","title":{"rendered":"One Bad Price, 960 Liquidations: Inside SK Hynix Flash Crash on Hyperliquid"},"content":{"rendered":"

The xyz.SKHYNIX perpetual on Hyperliquid crashed around 20% almost instantly late on Monday night, dropping from $1,131 to as low as $900, completely decoupling from pricing elsewhere on crypto exchanges.<\/p>\n

On-chain data indicates that the entire cascade stems from a single share trade placed from Seoul.<\/p>\n

How One Bad Price Caused a Liquidation Cascade<\/h2>\n

It appears that during the pre-market window before trading opened on the South Korean Nextrade exchange, there was an order to sell stock for major chip manufacturer SK Hynix placed 30% below the previous closing price. This order may have been placed by accident.<\/p>\n

With thin pre-market liquidity, there were no competing orders on Nextrade at that moment, and that single trade briefly set the price of the stock on that exchange.<\/p>\n

The price corrected back to market value within two minutes, but by that time, the XYZ oracle responsible for setting the price for this stock on Hyperliquid<\/a> had already consumed and relayed the information.<\/p>\n

Just four seconds after Nextrade opened for trading, the SKHYNIX oracle price plummeted 15.6%, and liquidations began about 2 seconds later.<\/p>\n

Freefall: The Final Figures<\/h2>\n

On Hyperliquid, users were betting on the price of the semiconductor stock using leverage. X.com user MarketAlpha calculated that 960 accounts lost $57 million in a liquidation cascade as a result of this oracle error, with $17.3 million in realized losses.<\/p>\n

Today, a single share sale triggered millions of dollars in liquidations on Hyperliquid.<\/p>\n

At 11:00 pm UTC on July 27, $SKHYNIX<\/a> suffered a flash crash on Hyperliquid, falling roughly 20% within seconds before rapidly recovering.<\/p>\n

The entire cascade began with a single share sold\u2026 pic.twitter.com\/quFIo2o1Lc<\/a><\/p>\n

\u2014 Markets Alpha (@MarketsAlpha) July 28, 2026<\/a><\/p>\n\n

The backstop then triggered auto-deleveraging against profitable short positions, with $10.8 million in gains realized across 100 accounts. The largest gains and losses for individual accounts were $2.55 million and $2.05 million, respectively. Surprisingly, the flash crash mimicked a real stock price correction of around 15%, which took place hours later on the open market.<\/p>\n

Hyperliquid staff have pointed out that the exchange is permissionless and that SKHYNIX is deployed and operated by XYZ, which is reportedly investigating the issue but has not released a statement.<\/p>\n

<\/a>Source: Hyperliquid Discord<\/p>\n

The post One Bad Price, 960 Liquidations: Inside SK Hynix Flash Crash on Hyperliquid<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The xyz.SKHYNIX perpetual on Hyperliquid crashed around 20% almost instantly late on Monday night, dropping from $1,131 to as low as $900, completely decoupling from pricing elsewhere on crypto exchanges. On-chain data indicates that the entire cascade stems from a single share trade placed from Seoul. How One Bad Price Caused a Liquidation Cascade It […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-205442","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/205442"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=205442"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/205442\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=205442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=205442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=205442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}