Trade.xyz announced full compensation for the contract abnormal liquidation incident involving Hynix, and accelerated reforms to the pricing mechanism

Mars Finance news: On July 29, Trade.xyz issued an announcement regarding the contract pin insertion incident involving Hynix: At 23:01 UTC on July 27, the token mark price of SK Hynix dropped sharply from $1,127.9 to $917.25, triggering mass forced liquidations of long positions. The price came from an actual executed trade that was captured by multiple independent data providers; the external venue was South Korea’s major pre-market market. Its oracle system operated according to established specifications, synchronizing and tracking the price from the external exchange, and at the technical level it “operated as designed.” However, the platform acknowledged that it is understandable for users to be dissatisfied with the liquidations triggered as a result, emphasizing that “market integrity is a core value of Trade.xyz.”

To this end, Trade.xyz decided to cover all liquidation losses caused by the abnormal price event via a one-time discretionary approach. The eligibility requirements will be announced soon, and compensation is expected to be completed within a few days, but it clearly stated that this decision “does not constitute a guarantee for similar future scenarios.” At the mechanism level, the platform will accelerate its review of the pricing approach—including re-evaluating assumptions about reliance on external venues—and will give its own order book price discovery higher weight (its order book depth and signal strength have already increased significantly relative to external sources), in order to handle tail events more effectively.