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Hyperliquid's pre-IPO SpaceX contracts suffers 45% flash crash, liquidating $1.5 million

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Hyperliquid SpaceX flash crash (Hyperliquid)

Hyperliquid's SPACEX-USDH perpetual contract suffered a violent flash crash on Thursday afternoon, plunging from an open of $2,277 to a low of $1,254, a near-45% collapse, within a single 30-minute window before partially recovering to around $2,169.

Key facts

Summary

A violent 45% flash crash wiped out hundreds of retail traders when a SpaceX-linked crypto contract plummeted in 30 minutes, wiping out $1.51 million in value and catching small-time investors completely off guard. The market was too thin to handle one massive trade because the token lacked deep financial backing, meaning a single giant sell order absorbed the market's available cash and sent the price into a temporary freefall. High risks face everyday investors ahead of a potential IPO as the crash heavily burned retail traders using leverage on a highly speculative token that has no official public price benchmark. What makes the episode particularly striking is the volume concentration.

Read full article at CoinDesk →

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