Trade.xyz compensates users after price incident with SKHYNIX contract

Trading platform trade.xyz has started paying out compensation to users who were affected by a price incident involving the SK Hynix contract (SKHYNIX) on 27 July. The price of the contract dropped sharply shortly beforehand, leading to large-scale liquidations of long positions.

In brief:

• The mark price of SKHYNIX briefly fell from $1.127,90 to $917.25, causing many long positions to be liquidated.
• Trade.xyz is using $1.115,50 as the reference price for calculating compensation.
• Users with a claim above $10.000 USDC must contact the platform before 15 August.

What went wrong on 27 July

On 27 July, the mark price of the SKHYNIX contract fell from $1.127,90 to $917.25 within a short period of time. This sudden drop caused a large number of long positions to be automatically liquidated. Trade.xyz describes the event as an abnormal price incident and is taking responsibility for the losses suffered by affected users.

The platform is using $1.115,50 per contract as the reference price for calculating damages. On that basis, the amount each user receives is determined on a case-by-case basis. In a post on X, the platform thanked users for their patience during the handling of this incident.

Payout in two categories

Users with compensation below $10.000 USDC will receive the full amount directly to their wallet, without needing to take any action themselves. A different approach applies to higher amounts: those users will first receive $9.999 USDC as an advance payment. The remaining portion will only be paid out after trade.xyz has completed additional investigation.

Those entitled to more than $10.000 USDC must contact customer support themselves via app.trade.xyz/support. This must be done no later than 15 August, otherwise the claim to the remaining amount will lapse. According to WuBlockchain, this involves a structured approach in which the platform assesses each claim individually.