On a single pre-market trade in Korea, the mark price plummeted by 19%. The company claims its oracle functioned as intended.
By Shaurya MalwaUpdated Jul 29, 2026, 6:40 a.m. Published Jul 29, 2026, 6:03 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Trade.xyz to Compensate Traders After $60 Million Crypto Liquidation (Christian Dubovan/Unsplash)SummaryShow- Trade.xyz has announced it will reimburse traders affected by the liquidation of positions after its SK Hynix perpetual futures contract suddenly dropped by 19% on Monday, attributing this to a single large trade on a low-volume Korean pre-market venue.
- The firm stated that its price oracle functioned correctly by conveying a genuine but disproportionate trade that significantly impacted the mark price, emphasizing that this reimbursement is a one-time discretionary measure with forthcoming eligibility criteria.
- In light of this incident, Trade.xyz intends to reevaluate its price sourcing strategies, opting to rely more on its own order books, as studies suggest that crypto perpetuals can more accurately lead spot market trends compared to traditional methods.
Trade.xyz, a decentralized perpetuals exchange, has committed to compensating traders whose positions were liquidated following a 19% drop in its SK Hynix perpetual futures contract late Monday. The company attributes this event to a single executed trade on a low-volume pre-market venue in Korea, rather than any malfunction within its systems.
According to the exchange, the mark price, which serves as the reference for calculating profits, losses, and liquidations, fell from around $1,128 to $917 at 23:01 UTC on July 27. This price change was triggered by a trade reported by multiple independent data sources, tracking what Trade.xyz identified as the main Korean pre-market venue.
“The oracle system operated as specified,” the company asserted, adding that no malfunctions or manipulations have been detected thus far.
The oracle, which is designed to fetch external data for blockchain systems, accurately reported a legitimate trade in a market so thin that a single order could cause a nearly 20% price shift, leading to the liquidation of positions as a result.
Trade.xyz clarified that this decision to cover losses is a discretionary one-time action, not a promise for future occurrences, with specific eligibility guidelines to be established, and payouts anticipated within days.
Crucially, the company indicated it will reassess its approach to external market venues, placing greater emphasis on the price formation from its own order books, which are becoming increasingly significant in terms of depth and relevance compared to external data sources.
Research on the structure of crypto markets has shown a similar trend in both bitcoin and ether, where perpetual futures often lead spot prices, and pre-IPO perpetuals provided a more accurate pricing for SpaceX’s first trading day than the traditional bookbuilding process.
The incident occurred just hours before Korean equities experienced a historic two-day decline, with SK Hynix shares dropping approximately 17% on Wednesday, following a quarterly profit increase of 557% that still fell short of expectations.
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Crypto Flows, Share and the Selective Rotation
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Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
By CoinDesk ResearchJul 22, 2026Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters:
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
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