Trade.xyz may compensate around $80 million for the Hitachi pin insertion, with the largest loss address expected to receive about $2 million in compensation

Yesterday morning, in the pre-market trading in South Korea, only one stock, SK Hynix, was traded at 1,272,000 Korean won, equivalent to about $868. This transaction of less than $900 was then brought into TradeXYZ's pricing system, causing the price of the SKHX perpetual contract to plummet from $1,128.2 to $927 within one minute. In less than three minutes, hundreds of accounts were liquidated by the system. In the following four hours, the scale of the liquidation increased to approximately $80 million. If Trade.xyz compensates for all the liquidation losses caused by this price anomaly according to the announcement, the compensation may be as high as around $80 million.

According to HyperInsight's transaction-by-transaction analysis of on-chain addresses, the nominal amount of SKHX liquidation in a short period was approximately $79.398 million, and the open interest dropped from $481 million to $331 million, a decrease of about $150 million. The top three addresses on the liquidation leaderboard were collectively liquidated for $14.7754 million, with the largest loss of approximately $3.957 million incurred by the address starting with 0x320, resulting in a realized loss of about $2.045 million.

Trade.xyz issued a statement this morning regarding the Hynix contract manipulation incident: it has decided to cover all liquidation losses caused by this price anomaly in a one-time discretionary manner. Specific eligibility requirements will be announced soon, and it is expected to complete the compensation within a few days. However, it explicitly stated that this decision "does not constitute a guarantee for similar situations in the future."

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