Trade.xyz will reimburse eligible traders for losses tied to the liquidation of its SK Hynix perpetual contract. The move follows a price anomaly that sent the contract’s mark price down nearly 19%. The company said the incident was triggered by an external SK Hynix price print. That print caused the mark price to drop sharply, leading to forced liquidations for some positions.
What caused the price drop
The anomaly wasn’t a system glitch inside Trade.xyz. Instead, it came from an outside data feed — a price print for SK Hynix shares. When that external print hit, the perpetual contract’s mark price fell by almost a fifth in a short period. The company’s own oracle, which feeds price data into the contract, continued to function normally throughout. Trade.xyz stated that its oracle “operated as designed” during the event. That means the price feed itself didn’t break or stall. The problem was the source data, not the mechanism that relayed it. Reimbursement plan
The exchange said it will cover losses for traders who meet its eligibility criteria. It didn’t specify a total dollar amount or a cap on payouts. The company also didn’t detail exactly how it will determine which traders qualify. Those details remain unclear. What is clear: Trade.xyz is taking responsibility for the fallout, even though it says its own systems weren’t at fault. That’s a notable stance in an industry where exchanges often blame external data or market conditions. Oracle design under scrutiny
By saying its oracle “worked as designed,” Trade.xyz is drawing a line between the tool and the data it ingests. But for traders who lost money, that distinction may not matter much. The question now is whether the oracle’s design should include safeguards against anomalous external prints — like circuit breakers or sanity checks. The company hasn’t said whether it plans to change how its oracle handles such events. It also hasn’t disclosed if it will adjust the contract’s parameters to prevent a repeat. For now, affected traders are waiting to hear if they’ll be made whole. Trade.xyz hasn’t set a deadline for submitting claims or announced a timeline for payouts.
