SK Hynix's perpetual futures on Hyperliquid plunged 20% in a minute before recovering, amid a broader market downturn affecting AI stocks.
Perpetual futures linked to South Korean chipmaker SK Hynix experienced a dramatic flash crash on the Hyperliquid platform, dropping to $900 before quickly rebounding above $1,000.
Futures Tumble 20% in a Minute
Within a minute, SK Hynix's perpetual futures saw a sharp decline of about 20%, plummeting from over $1,000 to $900. This occurred just prior to a significant selloff in the company's domestic stock.
On the morning of July 28, 2026, after the crash, SK Hynix shares in South Korea dropped by 14%, and the Kospi index fell by 11%. This decline in the stock market coincided with the flash crash and was exacerbated by low liquidity in cryptocurrency markets and a broader downturn in AI-related stocks. For instance, Nvidia shares fell by 5% after reports of a potential $250 billion financial support for an OpenAI-related data center.
The rapid decline of perpetual futures, traded in USDC, reflected the volatility of the cryptocurrency market during off-peak hours when liquidity is thinner.
SK Hynix's American depositary receipts (ADRs), which began trading on Nasdaq earlier in July, also saw a pre-market decline of 4.5%, falling to $136.51. The company's stock has seen a nearly 48% decrease since its peak price of 1,947 won on June 26.
Hyperliquid, the decentralized exchange where the crash occurred, has gained traction among traders of traditional assets in recent months. However, as of now, the exchange has not issued a statement regarding the incident.
Flash crashes are not uncommon in cryptocurrency trading, particularly during the transition between U.S. market closures and openings in Asia, where liquidity tends to be lower.
