SK Hynix Faces $128 Million Liquidation Due to Order Mistake

In a significant incident at the domestic alternative exchange NextTrade's pre-market, a single order mistake for one share of SK Hynix led to a limit-down execution, resulting in a large-scale liquidation at Hyperliquid. On the morning of the 28th, shortly after the opening of the NXT pre-market, SK Hynix was traded at 1,272,000 won, down 29.96% from the previous day's closing price, with a transaction volume of just one share. Following this, buy orders flowed in, and within about two minutes, the price recovered to around 1,700,000 won. However, the abnormal execution price was reflected in the oracle used for price determination at Hyperliquid, causing the SKHX perpetual futures price to plummet by about 18% at one point. This led to a chain liquidation of long positions that used leverage, with the liquidation amount reaching approximately $128 million. This incident demonstrated that a single execution unrelated to corporate fundamentals can impact the global derivatives market through an oracle. The NXT pre-market executes orders immediately, and if there is insufficient liquidity right after opening, small orders can significantly shake the price. NXT plans to introduce a static volatility dampening mechanism (VI) starting in September.

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