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

TLDR

• SPACEX USDH perp dropped from $2,277 to $1,254 in about 30 minutes.
• The sharp move liquidated 405 users across 1,393 positions.
• Ventuals linked the price move to incorrect offchain oracle data.
• The contract rebounded near $2,169 after the sudden decline.
• Ventuals said it is reviewing compensation for affected users.

Hyperliquid’s SPACEX-USDH perpetual contract fell nearly 45% on Thursday after an oracle data error hit the market. The contract dropped from $2,277 to $1,254 in about 30 minutes. The move triggered forced liquidations for 405 users across 1,393 positions and erased $1.51 million in notional value, before prices later recovered near $2,169.

Oracle Error Drives Sharp Price Drop

The fall took place on the SPACEX-USDH perpetual market listed through Ventuals on Hyperliquid. The contract is tied to a pre-IPO SpaceX market, which allows traders to take leveraged positions before any public stock listing.

According to Ventuals, an offchain data provider returned wrong data. That data was used as part of the oracle price. As a result, both the oracle price and mark price moved sharply, which caused some positions to be liquidated. Ventuals said the issue came from “incorrect data returned by an offchain data provider used as part of the oracle price.” 

The team also said the wrong input caused the market’s oracle and mark price to move in a dramatic way. The sudden decline pushed the contract from around $2,277 to nearly $1,254. That marked a drop of close to 45%. The price later rebounded to around $2,169, but many traders had already closed out.

Liquidations Hit Leveraged Traders

The price move affected traders using leverage on the pre-IPO perpetual contract. Data shared in the report showed 405 users were liquidated. The event covered 1,393 positions and wiped out $1.51 million in notional value. Liquidations happen when a trader’s margin falls below the needed level. 

In this case, the oracle and mark price changes appear to have moved fast enough to close many positions before the rebound. The event showed how oracle inputs can affect leveraged crypto markets. 

Perpetual contracts depend on reliable pricing, especially when they track assets that are not openly traded on public exchanges. Pre-IPO markets can carry added pricing risk because reference data may be limited. When offchain data is used, wrong inputs can move through the system and affect trader balances, margin levels, and liquidation prices.

Ventuals Reviews Affected Positions

Ventuals said it has taken immediate steps to reduce the chance of a similar event across pre-IPO markets. The team also said it is reviewing the effect on users and may provide compensation. “We have taken immediate steps to prevent this from happening again on any of the pre-IPO markets,” Ventuals said. 

It added that it is “evaluating the impact it had on affected users for appropriate compensation.” The review is expected to focus on users whose positions were closed during the incorrect price move. The team did not give a final figure for compensation or a timeline for the review.

The incident also raised attention around safeguards for leveraged markets. These include oracle checks, mark price controls, pause rules, and limits on how fast bad data can affect live positions. The SPACEX-USDH contract later recovered most of the loss, but the liquidation event remained in place for affected accounts. Traders in pre-IPO perpetual markets may now watch oracle design and risk controls more closely.

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