A major trader flipped a multimillion-dollar SK Hynix position from deep losses to a hefty $6.44 million profit in just a few days as the chipmaker's earnings caught the market off guard. The wallet 0xC8b5 took a leveraged long on a Hyperliquid perpetual contract tied to SK Hynix shares, initially showing promise before plunging almost $2.3 million into the red.
SK Hynix’s recent earnings report revealed record Q2 operating profit, fueled by soaring demand for its advanced HBM4 memory chips. Still, the stock’s price moved erratically amid a broader market selloff in South Korea and uncertainty around AI infrastructure spending. That volatility put serious pressure on leveraged traders like 0xC8b5, who had already suffered over $1 million losses on prior trades.
A Volatile Ride for SK Hynix Traders
At its peak on July 29, the trader’s position was worth $37.3 million and briefly showed gains close to $778,000. However, the value soon fell below $34.3 million. Just two days later, after SK Hynix shares surged by nearly 29% following earnings and a notable direct stock purchase by SK Group Chairman Chey Tae-won, the wallet’s holdings soared to an estimated $43 million in value.
This swing recovered all losses and delivered a $6.44 million profit within days. The dramatic reversal highlights how earnings-driven momentum can rapidly upend leveraged bets. It also follows a $57 million liquidation event on the same SKHX perpetual market days earlier, underlining the razor-thin margins for error facing traders tracking South Korean chipmakers amid the ongoing AI stock rally sparked by strong Amazon and Microsoft earnings.
material is for informational purposes only and does not constitute financial advice
