SK Hynix Sees Shocking 30% Flash Crash in Nextrade Pre-Market Trading, Second Abnormal Volatility Since Last Week

TechFlow news, August 6, according to Cailianshe, South Korean memory chip giant SK Hynix plummeted briefly in Nextrade pre-market trading for the second time in about a week, triggering renewed market questions about the severe price volatility on South Korean alternative trading platforms.

At 8 a.m. local time on Thursday, SK Hynix traded 11 shares at 1.168 million won per share on Nextrade, plunging 30% from the previous day's closing price and hitting the daily limit down. At the end of the 50-minute pre-market trading session, the decline narrowed to about 2%. During the regular trading session on the Korea Exchange on Thursday morning, SK Hynix's stock price fell by up to 9.8%. After U.S. memory chip company SanDisk's revenue outlook for the current fiscal quarter fell short of expectations, its stock price plunged in after-hours trading, causing South Korean chip stocks to generally weaken accordingly.

This severe volatility was highly similar to the trend last Tuesday. At that time, SK Hynix also plummeted by 30% in pre-market trading before narrowing the decline. That incident caused the price of derivative contracts linked to SK Hynix stock traded on the cryptocurrency exchange Hyperliquid to fall by about 20%, forcing the liquidation of nearly $60 million in long positions holding the contract within two minutes.