Hyperliquid: Abnormal volatility of the Hynix contract investigated by Trade.xyz, conclusions will be announced separately

TechFlow reports, on July 28, Hyperliquid responded to the abnormal volatility in the SK Hynix perpetual contract market, stating that the platform is a permissionless blockchain, HIP-3 markets can be independently deployed and operated by different teams, among which the xyz:SKHYNIX perpetual contract is deployed and operated by the Trade.xyz team; currently, the team is investigating the incident and will announce progress after reaching conclusions.

Hyperliquid also explained that HIP-3 deployers can independently push the market's mark price, oracle price, and external perpetual price inputs. If adopting a pricing mechanism similar to perpetual contracts operated by platform validators, the protocol provides only one of the three median components, namely the median of the latest on-chain trade price, best bid price, and best ask price; the remaining two components are provided by the deployer and jointly determine the final mark price.

Earlier report, Hyperliquid $SKHX flash crashed 17.9%, 4-hour liquidations surpassed Binance.