Key Takeaways:
- Hyperliquid's SPACEX-USDH token crashed 45% to $1,254 on May 28
- The flash crash liquidated 405 users across 1,393 positions worth $1.51 million
- Thin liquidity of under $2.9 million in open interest amplified the selloff
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Hyperliquid SpaceX token crashes 45% as thin liquidity triggers $1.5M liquidation
Hyperliquid's SPACEX-USDH perpetual contract plunged 45% to $1,254 on May 28, wiping out $1.51 million in retail positions within 30 minutes.
Hyperliquid data shows 405 users were liquidated across 1,393 positions, with the median position holding just $31 in margin. The contract had generated only $4.87 million in 24-hour volume against open interest of under $2.9 million, leaving the market unable to absorb a single large sell order without cascading liquidations.
The token recovered partially to around $2,169 after the crash, but the mark price at settlement of $2,132 still sat more than $220 above the oracle price of $1,908, implying the contract remained at a premium even after the carnage. Most affected traders were using roughly 3x leverage with minimal cushion, according to Hyperliquid data.
SpaceX is targeting an IPO in June, but the SPACEX-USDH token has no public price benchmark — shares of Elon Musk's rocket company trade only through private secondary markets gated to accredited investors. The synthetic contract on Hyperliquid allows traders to bet on SpaceX's valuation without owning any actual equity, a structure that leaves the market vulnerable to liquidity shocks in the absence of a deep spot market to anchor prices.
This article is for informational purposes only and does not constitute investment advice.
