A Hyperliquid perpetual contract linked to SK Hynix experienced a sharp short-term drop, falling as much as 17.9% intraday. This volatility was not caused by company news, but rather by an unusual price quote in the South Korean pre-market, which was transmitted to the on-chain contract via an oracle.

The unusual price quote comes from the NXT Marketplace.

The report states that the South Korean NXT market mistakenly quoted one share of SK Hynix at 1.272 million won during the pre-opening phase, a price significantly deviating from normal levels. This abnormal quote subsequently triggered a trading halt on the underlying market.

Oracles drive contract prices down

Because the Hyperliquid perpetual contract tracks external price sources, its price fell in tandem with the underlying market when anomalies occurred. Subsequently, as the relevant markets on Binance recovered, the contract price gradually rebounded.

The contract was deployed by a third-party team.

Hyperliquid stated that the contract was deployed by a third-party team, XYZ, and was not directly launched by the platform; it uses the HIP-3 framework. The platform said that the relevant team is currently investigating the incident.

Based on available information, this volatility primarily occurred in the price transmission process, specifically how abnormal pricing in the underlying market affected on-chain derivative pricing. The platform has not yet disclosed further details of its handling of the situation.