On July 28, Hyperliquid’s tokenized stock futures contract SKHX saw a sudden 17.9% plunge after an abnormal pre-market order on Korea’s NXT (filled with 1 share for 1.27M won, about $867) triggered a trading halt following a 30% drop due to poor liquidity. Oracle then followed the decline, Binance arbitrage also fell in sync, and the 4-hour liquidation amount has already surpassed Binance—though the price has now returned to normal.
NXT abnormal order triggers SKHX flash crash of 17.9%
According to on-chain monitor “Ai Yi,” on the morning of July 28, Korea’s NXT pre-market trading saw an abnormal order (filled with 1 share for 1.27M won, about $867). After a 30% fall due to poor liquidity, it triggered a trading halt. Hyperliquid’s SKHX contract then plunged as Oracle tracked that abnormal price, while Binance also fell in step as arbitrageurs moved funds; the 4-hour liquidation amount has exceeded Binance’s, but the price has now recovered to normal.
An on-chain analyst “Yu Yan” monitoring found that on Hyperliquid, the largest SKHX short position was shorting $40.5 million at $1,275.7 (current price $1,083), with unrealized profit of $6.1 million; the same address also shorted BRENTOIL with shorting value of $19.15 million at $97.7, with unrealized profit of $2.43 million.
SK Hynix ADR stock falls to the lowest level since listing
SK Hynix ADR shares plunged by as much as 10% intraday to $139.01 on July 28 (the lowest since listing). They ultimately closed at $143.02, below the $149 issue price. Guru Club reported that, alongside stocks such as SpaceX, SK Hynix became one of the first companies in this year’s largest-scale US stock IPOs to fall below its issue price.
With the semiconductor sector under pressure overall, the semiconductor index closed at its lowest level since May 19. The cost of providing default protection for corporate bonds issued by Nvidia (NVDA.O) rose, driven by expectations that the value of the next round of AI infrastructure transactions may exceed $1.27M.
Market impact of new rules for Korea leveraged ETFs
On July 27, the trading of Korea’s single-stock leveraged ETFs and the new rules scheduled to take effect are as follows:
July 27 trading value: The 16 leveraged and inverse ETFs tied to Samsung Electronics and SK Hynix totaled 7.46 trillion won (down 27% from the previous day, and down more than 30% from the prior week’s average daily trading value)
SK Hynix related products: Trading value reached 5.23 trillion won, about 70% of the total trading value of all single-stock leveraged and inverse ETFs
July 31 new rules: For individual investors to newly buy or increase holdings of a single-stock leveraged ETF/ETN starting July 31, they must hold a cash-based initial margin of 30 million won (some reports indicate it may be raised to 50 million won); plans are also to increase the minimum trading unit
T+2 settlement impact: Sale proceeds can only be used again after two days, fundamentally limiting same-day repeat trading
FAQ
What is the root cause of SKHX’s flash crash on July 28?
According to on-chain analyst “Ai Yi” monitoring, the cause was an abnormal pre-market order on Korea’s NXT (filled with 1 share for 1.27M won) that led to a trading halt after poor liquidity caused the spot price to drop by as much as 30%. The SKHX contract on Hyperliquid then flashed down 17.9% as Oracle followed the abnormal price, and the price has now returned to normal.
How far did SK Hynix ADR (SKHY.O) shares fall below the issue price?
According to Guru Club, on July 28, SK Hynix ADR shares briefly dropped to $139.01 intraday (about 6.7% below the $149 issue price). They ultimately closed at $143.02. SK Hynix listed earlier this month with a fundraising size of $26.5 billion, becoming one of the first companies among this year’s largest-scale US IPOs to fall below its issue price.
What is the core content of Korea’s July 31 leveraged ETF new rules?
Starting July 31, individual investors newly buying or increasing holdings of a single-stock leveraged ETF/ETN must hold a cash-based initial margin of 30 million won (some reports indicate it may be raised to 50 million won). The regulator also plans to raise the minimum trading unit. Yuanta researcher Kim Se-bin said that with T+2 settlement, sale proceeds can only be used again two days later, which will fundamentally limit same-day repeat trading, and is expected to significantly reduce trading volume and trading value.
