Crypto liquidations set off by SK Hynix perps mark-price drop

Decentralized perpetuals venue Trade.xyz said it will reimburse traders whose positions were liquidated after SK Hynix perps fell about 19% during Korean pre-market trading. The drop was reflected in the platform’s “mark price,” which plunged from roughly $1,128 to $917 around 23:01 UTC on July 27, triggering liquidations tied to that reference level. Trade.xyz said its oracle “worked as intended.” It pointed to a single outsized executed trade from a thin external Korean venue, relayed through multiple independent data providers, rather than an oracle malfunction. The exchange framed the payout as a one-time discretionary decision, with eligibility rules and payments expected within days. For traders, the key update is that Trade.xyz plans to reassess how it sources the mark price, including giving more weight to its own order books. The incident underscores how crypto liquidations can cascade from market microstructure and cross-venue print anomalies, raising ongoing mark-price formation and oracle-design questions. The move occurred ahead of a major two-day decline in Korean equities, while SK Hynix shares later sold off sharply after earnings.