Trade.xyz: Claims compensation for the liquidation losses caused by the SKHYNIX abnormal pricing incident

Deep Tide TechFlow message: On July 29, Trade.xyz stated that at 23:01 on July 27 (UTC), SKHYNIX’s marked price fell from $1,127.9 to $917.25. The price came from a executed trade and was relayed by multiple independent data providers. The platform said its oracle was then connecting to external pricing and tracking the trading venue; since the venue was a major market for South Korea’s pre-market trading, the oracle system operated according to established rules.

Trade.xyz said that although the system operated as designed, it understands users’ dissatisfaction with liquidations triggered as a result. Based on the market integrity principle, the platform decided to cover liquidation losses caused by this abnormality. The relevant eligibility criteria will be published soon, and compensation is expected to be completed within the next few days. The platform also emphasized that this is a one-time discretionary handling and does not indicate that similar measures will be taken in the future.

Trade.xyz also said it will further improve its pricing system afterward to better handle tail events, and speed up the review of the price formation mechanism, including re-assessing how reference is taken from external trading venues, and factoring in the platform’s own order book’s increasingly enhanced depth and price signals.