Trade.xyz announced it will repay traders who were liquidated after the SK Hynix perpetual futures contract plunged 19% in a sudden move on Monday. The sharp drop, hitting the mark price used for calculating liquidations, stemmed from a solitary trade on a thin Korean pre-market exchange.
The company explained that its oracle system, which pulls external market data into the blockchain platform, accurately reflected this outsized trade. Despite the drastic price shift and resulting liquidation of positions, Trade.xyz confirmed no system failure or manipulation occurred.
Following the incident, Trade.xyz emphasized the reimbursement is a one-time, discretionary measure, with eligibility criteria forthcoming. The firm plans to revise how it sources pricing data, intending to rely more heavily on its own order books. Research suggests crypto perpetual contracts can sometimes anticipate spot market moves and even significant events like IPOs more precisely than traditional price-setting methods.
