MarketsPerpetual futures linked to SK Hynix experienced a flash crash on Hyperliquid, plummeting to $900 before rebounding above $1,000.
Perpetual futures on the South Korean chipmaker's American depositary receipts dropped 20% in a minute before recovering.
By Omkar Godbole|Edited by Sheldon Reback Jul 28, 2026, 10:05 a.m. 2 min read
SK Hynix perpetual futures faced a flash crash on Hyperliquid. (Hyperliquid)- Perpetual futures for SK Hynix on the Hyperliquid platform fell approximately 20% in just one minute, later recovering to over $1,000.
- The crash in USDC-denominated contracts was followed by a significant selloff in South Korea, where SK Hynix shares dropped 14% and the Kospi index fell 11%.
- This incident occurred amidst thin liquidity in cryptocurrency markets overnight and a broader decline in AI-related stocks, including a 5% decrease in Nvidia after news of a possible $250 billion financial support for an OpenAI-related data center.
Perpetual futures associated with SK Hynix, a South Korean chip manufacturer whose American depositary receipts began trading on Nasdaq earlier this month, faced a sharp decline on Hyperliquid just prior to a downturn in its domestic stock price.
Between 23:00 UTC and 23:01 UTC, the price of perpetuals reflecting the Seoul-listed stock fell by 20% to $900, based on Hyperliquid's data. The price quickly bounced back to over $1,000 within the next minute, reaching $1,092 shortly thereafter. This contract is traded in USDC, a stablecoin pegged to the dollar.
One hour later, the Korean stock market opened negatively, primarily affecting chip manufacturers. By the close of trading, SK Hynix shares had declined by 15% to 1,550,000 won ($1,762). Other stocks, such as Samsung Electronics and Hyundai Motor, also faced losses, while the Kospi index fell by 11%.
In pre-market trading, SK Hynix's American depositary receipts, with ten representing one share, fell by 4.5% to $136.51.
Hyperliquid, a decentralized exchange focused on perpetual contracts, has gained popularity among traders looking to invest in traditional assets, particularly since the onset of the Iran war in late February. As of publication, the exchange had not commented on the incident.
Flash crashes on cryptocurrency exchanges are frequently observed, particularly during the period between the closure of U.S. markets and the opening of markets in China, South Korea, and other parts of Asia, due to lower liquidity compared to other trading hours.
SK Hynix is a significant supplier of high-bandwidth memory (HBM) chips for Nvidia's AI processors and has seen a substantial decline, nearly 48%, from its peak price of 1,947 won on June 26.
It is not the only one affected; sentiment towards AI stocks has also soured on Wall Street. Recently, Nvidia shares fell by 5% following a Wall Street Journal report regarding its potential $250 billion financial backing for an OpenAI-associated data center project.
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