Inside the brutal 2-minute flash crash sending a $400M South Korean market plunging on Hyperliquid
A brief price shock hit SKHX, a Hyperliquid perpetual tied to SK Hynix, briefly dropping to $927 before recovering in about two minutes. The move drew scrutiny because SKHX’s pricing depends on deployer-controlled oracle inputs under Hyperliquid’s HIP-3 design, while HyperCore handles matching, margin, liquidations, and auto-deleveraging. The broader market was already under heavy stress: South Korea’s KOSPI fell 10.84% after a marketwide circuit breaker, and SK Hynix shares closed down 14.65%. DefiLlama later showed SKHX open interest at $407 million and 24-hour volume at $959 million. The key unresolved issue is how the deployer’s oracle and mark-price inputs produced the spike. Public sources did not show an official incident report, compensation plan, halt, or parameter change. TradeXYZ said it was investigating and would provide an update.
