What caused the Hyperliquid liquidation event?

Hyperliquid said an incorrect price from South Korea's NXT exchange was used by the market's oracle. This triggered widespread liquidations.

How much was liquidated?

About $57.4 million in long positions across 960 accounts was liquidated within seconds.

Did Hyperliquid operate the affected market?

No. Hyperliquid said the market was created and managed by Trade.xyz under its HIP-3 framework.

Will affected users receive compensation?

Trade.xyz said it will compensate eligible users as a one-time discretionary payment.

Trade.xyz said it is reviewing its oracle system and plans to improve how prices are handled during unusual market conditions.

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Hyperliquid explains $57M liquidation event

Written by Heidi Cuthbert Published Jul 29, 2026, 1:49 AM

Hyperliquid said an oracle pricing error triggered about $57.4 million in liquidations on a SK Hynix perpetual market.
The platform said Trade.xyz, not Hyperliquid, launched and managed the affected market.
Trade.xyz said it will compensate eligible users and improve its pricing system.

Hyperliquid (CRYPTO:HYPE) said a pricing error caused its SK Hynix perpetual contract to fall 17.9%, triggering about $57.4 million in liquidations across 960 long positions.

The platform said it did not create or operate the market because it was launched by Trade.xyz under the HIP-3 framework.

Trade.xyz said the oracle used a price from South Korea's NXT exchange that was far below the previous closing price, causing the sharp drop.

The company said the incorrect price became the market reference, which led to rapid liquidations before trading stabilised.

Trade.xyz said it will compensate eligible users for losses linked to the incident and review its pricing system to reduce the risk of similar events.

The incident happened during low-volume pre-market trading, when a single price print was reflected in the market's oracle feed.

The event has renewed concerns about how decentralised trading platforms use external price feeds for perpetual futures markets.