Hyperliquid SpaceX Market Suffers 42% Flash Crash Due to Oracle Error

Ventuals, the operator of pre-IPO perpetual futures on Hyperliquid, confirmed on May 28, 2026 that an oracle error caused forced liquidations in the SpaceX (SPACEX) pre-IPO market. The off-chain data provider used as a component of the oracle price returned incorrect data, causing the market's oracle and mark price to move dramatically. At approximately 12:40 AM local time, SpaceX prices on Hyperliquid dropped from $2,175 to $1,250—a 42% decline—before recovering. Hyperliquid operates decentralized exchange (DEX) markets for pre-IPO products linked to unlisted company valuations, with Ventuals providing perpetual futures products tied to companies like SpaceX.

Technical Cause of Incident

Ventuals stated via X that the oracle malfunction originated from an off-chain data provider component. Oracles in digital asset derivatives markets transmit external price data to on-chain or trading systems. When incorrect price data is reflected, forced liquidations or extreme price volatility can occur regardless of actual market conditions. The faulty data fed into the oracle price calculation mechanism triggered the mark price deviation that led to position liquidations.

Price Impact and Timeline

On May 28, 2026 at approximately 12:40 AM, SpaceX prices on Hyperliquid fell from $2,175 (approximately 3.27 million KRW) to $1,250 (approximately 1.88 million KRW). This represented a decline of over 42% from the pre-incident price level. Prices subsequently recovered, but some leveraged positions were forcibly liquidated during the volatility window.

Platform Response and Compensation

Ventuals stated: "This led to the liquidation of some user positions, but we have taken steps to ensure the issue does not recur in the market." The platform added that it is currently tallying the scale of damages and affected accounts, and is reviewing compensation measures for impacted users. Ventuals operates a pre-IPO perpetual futures platform on Hyperliquid, offering products linked to the estimated valuations of unlisted companies including SpaceX.