One incorrectly priced share of SK Hynix triggered $57 million in liquidations on
@HyperliquidX
At the Korean pre-market open on July 28th, an order error on NXT executed a single share around 30% below the previous close
Trade XYZ's oracle read that print as the reference price for the xyz:SKHYNIX perpetual market, and seven seconds later the liquidations began
960 long accounts were closed out for $17.3 million in realized losses. The oracle recovered within two minutes, but the liquidations were final
Nothing was stolen and no contract was exploited
It was an oracle configuration problem, due to no outlier rejection, trade-size weighting, or sanity check against the prior close
Would this have been a covered event? Yes.
The Hyperliquid Core Protocol Cover Annex names HIP-3 Trade[XYZ] Perpetual Markets, and Oracle Failure is a Covered Event under Nexus Mutual Protocol Cover
Trade XYZ said it will reimburse eligible losses as a "one-time discretionary decision"
With the speed that DeFi moves at, small errors can trigger large losses within seconds
That’s why thousands of investors, protocols and funds have trusted Nexus Mutual to protect their digital assets against the unexpected