Hyperliquid SPACEX USDH Perpetual Drops 45% as Oracle Error Triggers Liquidations

TLDR

• The SPACEX USDH perpetual contract plummeted from $2,277 to $1,254 within a 30-minute window.
• This volatility resulted in the liquidation of 1,393 positions held by 405 traders.
• Ventuals attributed the price swing to erroneous offchain oracle data.
• Following the flash crash, the contract price recovered to approximately $2,169.
• Ventuals is currently assessing potential compensation for those impacted.

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(SeaPRwire) –   On Thursday, Hyperliquid’s SPACEX-USDH perpetual contract experienced a nearly 45% decline following an oracle data malfunction. The contract price slid from $2,277 to $1,254 in roughly half an hour. This event triggered forced liquidations across 1,393 positions held by 405 users, wiping out $1.51 million in notional value before the price eventually rebounded to around $2,169.

Oracle Malfunction Triggers Price Plunge

The decline occurred on the SPACEX-USDH perpetual market, which is hosted on Hyperliquid via Ventuals. This contract tracks a pre-IPO SpaceX market, enabling traders to engage in leveraged speculation prior to an official public stock offering.

Ventuals reported that an offchain data provider supplied inaccurate information, which was subsequently integrated into the oracle price. Consequently, both the mark price and the oracle price shifted violently, leading to the liquidation of various positions. Ventuals confirmed the root cause was “incorrect data returned by an offchain data provider used as part of the oracle price.”

Hyperliquid SPACEX-USDH Perp Plunges Nearly 45% After Oracle Data Error

Hyperliquid’s SPACEX-USDH perpetual contract plunged nearly 45% in 30 minutes on Thursday, falling from $2,277 to $1,254 before rebounding to around $2,169. The move liquidated 405 users across 1,393… pic.twitter.com/eP2P6OyDn2

— Wu Blockchain (@WuBlockchain) May 29, 2026

The team noted that the faulty input caused a dramatic shift in the market’s mark and oracle prices. The rapid descent from $2,277 to $1,254 represented a drop of nearly 45%. Although the price later recovered to approximately $2,169, many traders had already been liquidated.

Leveraged Traders Face Liquidations

The price volatility impacted traders utilizing leverage on the pre-IPO perpetual contract. Reports indicate that 405 users were liquidated across 1,393 positions, resulting in a loss of $1.51 million in notional value. Liquidations are triggered when a trader’s margin balance falls below the required threshold.

In this instance, the rapid adjustment of the oracle and mark prices appears to have closed numerous positions before the market could recover. This incident highlights the sensitivity of leveraged crypto markets to oracle inputs.

Perpetual contracts rely on accurate pricing, particularly when tracking assets not yet available on public exchanges. Pre-IPO markets carry inherent pricing risks due to limited reference data. When offchain data is utilized, erroneous inputs can propagate through the system, negatively impacting trader balances, margin requirements, and liquidation thresholds.

Ventuals Evaluating Impact on Positions

Ventuals stated that it has implemented immediate measures to mitigate the risk of similar occurrences across its pre-IPO markets. The team is currently reviewing the impact on users and considering potential compensation. “We have taken immediate steps to prevent this from happening again on any of the pre-IPO markets,” Ventuals noted.

The firm added that it is “evaluating the impact it had on affected users for appropriate compensation.” The assessment will focus on users whose positions were closed during the erroneous price movement. No specific compensation amounts or timelines for the review were provided.

The event has drawn attention to the necessity of safeguards in leveraged markets, such as oracle validation, mark price management, circuit breakers, and limits on how quickly anomalous data can impact active positions. While the SPACEX-USDH contract has largely recovered, the liquidations remain finalized for the affected accounts. Traders in pre-IPO perpetual markets are likely to scrutinize oracle architecture and risk management protocols more closely moving forward.