MarketsShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailHyperliquid's SpaceX Contracts Experience 45% Flash Crash, Resulting in $1.5 Million Liquidation
A significant selloff in a crypto token associated with SpaceX led to the liquidation of numerous retail traders within 30 minutes, as the market lacked sufficient liquidity to manage the sudden downturn.
By Oliver Knight|Edited by Nikhilesh DeUpdated May 28, 2026, 5:31 p.m. Published May 28, 2026, 5:28 p.m. 2 min readMake preferred on
Hyperliquid SpaceX flash crash (Hyperliquid)Key Points:
- A dramatic flash crash of 45% occurred when a SpaceX-related crypto contract dropped sharply in just 30 minutes, resulting in a loss of $1.51 million and catching many retail investors by surprise.
- The market's thin liquidity was unable to accommodate a large sell order, causing the price to plummet as it absorbed nearly all available cash.
- Retail investors are facing significant risks ahead of a potential IPO, as the crash severely impacted those who were using leverage on this speculative token, which lacks an established public price reference.
The SPACEX-USDH perpetual contract on Hyperliquid experienced a steep decline on Thursday afternoon, falling from an opening price of $2,277 to a low of $1,254, marking a nearly 45% drop within just 30 minutes before it partially rebounded to approximately $2,169. This event liquidated 405 users across 1,393 positions, erasing $1.51 million in notional value, according to Hyperliquid data.
What makes this incident particularly noteworthy is the concentration of trading volume. In the 24 hours prior to the crash, the contract had seen minimal activity, with only $4.87 million in total trading volume against an open interest of under $2.9 million. Subsequently, a single trade absorbed most of this volume, revealing a lack of depth and liquidity in the market.
The average liquidated position had merely $31 in margin, indicating a retail-heavy user base engaging in 3x leverage with very little buffer.
Hyperliquid's SPACEX-USDH represents a synthetic perpetual contract that allows investors to speculate on SpaceX's market valuation, as the company remains private and its shares cannot be purchased ahead of the anticipated IPO. This contract enables traders to bet on the potential future valuation of the company.
Investors are not acquiring actual shares of Elon Musk's company and do not gain any ownership or shareholder rights.
Unlike perpetual futures for Bitcoin or Ethereum, which are tied to robust, liquid spot markets, the SPACEX contract lacks a public price benchmark, as SpaceX shares are traded only in private secondary markets accessible to accredited investors.
At settlement, the mark price of $2,132 was still over $220 higher than the oracle price of $1,908, indicating that the contract continued to trade at a premium despite the market turmoil.
SpaceX is aiming for an IPO in June.
UPDATE (May 28, 2026, 17:31 UTC): Additional context has been added.
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