SKHX Flash Crash Breaches Hyperliquid Backstop Liquidator, Forcing $26 Million Liquidation
BlockBeats News, July 28th, according to Hyperinsight Monitoring, this morning at 7 AM after the South Korean pre-market trading opened, SKHX on Hyperliquid quickly plummeted from $1128.2 to $927, with a maximum drop of 17.8% within 1 minute;
At the time of writing, SKHX has rebounded to $1097.9, a recovery of 18.4% from the low point, with a 24-hour trading volume of $891 million.
This anomaly was widely attributed to an oracle capturing extreme transaction prices during the South Korean pre-market's low liquidity period. However, as of the time of writing, the official statement has not classified it as a technical malfunction. More precisely, the SKHX oracle synchronized with the abnormal low price in the South Korean NXT pre-market, which was then transmitted to the reference price, triggering a cascade of liquidations.
According to trade.xyz rules, the SKHX oracle price is calculated by dividing the SK Hynix KOSPI price by the USD to KRW exchange rate and accessing external executable quotes during the South Korean pre-market.
During the liquidation frenzy, the on-chain reserve liquidation account at 0x400...0001 took over 406 addresses' SKHX long positions at 7 AM, totaling around 27,100 units, with an average takeover price of around $969, a nominal value of approximately $26.26 million, resulting in a realized loss of around $1.001 million.
As the SKHX price continued to decline, this reserve liquidation account, originally responsible for absorbing user risks, was also subject to a liquidation in the opposite direction. In this event, the risk did not stop after being transferred but instead continued to be transmitted to the reserve liquidation account.
Compared to yesterday afternoon's snapshot, the outstanding SKHX contracts decreased from 410,700 units to 353,600 units, a decrease of approximately 13.9%; if calculated at the reference price, the nominal contract value decreased from around $508 million to $388 million, a decrease of about 23.5%.
Address: 0x4000000000000000000000000000000000000001
