SpaceX-linked pre-IPO perpetuals on Hyperliquid came under pressure after the SPACEX-USDH contract crashed by about 45% in 30 minutes.
- SpaceX-USDH plunged 45% in 30 minutes, helping trigger liquidations that wiped out $25.27 million in positions over the past 24 hours.
- HYPE rose near $62 after the crash, showing demand stayed firm despite new oracle concerns.
- The selloff exposed thin liquidity gaps in pre-IPO perps as traders chased synthetic SpaceX exposure.
The move erased about $1.5 million in liquidations and raised fresh questions about thin markets, oracle feeds, and leveraged access to private-company exposure.
The move did not cause a direct selloff in Hyperliquid’s native token. HYPE (HYPE) traded near $62 on May 29, with crypto.news data showing an 8% gain over 24 hours. The rebound kept the token close to its recent record high, even as traders reviewed the risk around speculative pre-IPO markets.
SpaceX perp crash hits leveraged traders
The SPACEX-USDH contract fell from about $2,277 to $1,254 before recovering near $2,169. The latest 24-hour liquidation data shows 2.83K users were liquidated, with $25.27 million in notional positions and $1.58 million in margin or collateral wiped out.
The market had limited depth before the fall. The contract had less than $2.9 million in open interest and about $4.87 million in daily volume. That left traders exposed when the price moved fast.
The sharp move mostly hit small leveraged accounts. CoinDesk reported that the median liquidated position held only $31 in margin. That figure points to retail traders using high leverage in a market with limited cash to absorb a large move.
The event also showed how quickly losses can spread in a synthetic market. When prices fall through liquidation levels, forced selling can add more pressure. That can push prices lower, even when the first move comes from a data or market-structure issue.
Oracle issue adds pressure to pre-IPO market
Ventuals linked the crash to faulty data from Notice.co. The issue reportedly involved SpaceX’s recent 5-for-1 stock split and how that change entered the oracle feed.
The project said it patched the oracle and plans compensation within 48 hours. That response may reduce user losses, but the event still showed a key risk for pre-IPO perps. These contracts depend on outside pricing data, and one weak feed can affect many users at once.
SpaceX is still a private company, so there is no live public stock price for traders to use as a clean reference. That makes synthetic markets harder to price than listed equities or spot crypto assets. It also raises the risk of sharp gaps when data changes.
The crash came as interest in SpaceX exposure had grown across crypto markets. The potential SpaceX IPO has drawn strong attention, while Hyperliquid’s pre-IPO products gave traders a way to speculate before public listing access.
HYPE price reaction stays strong
HYPE did not follow the SPACEX-USDH crash lower. Crypto.news data showed Hyperliquid trading around $62.46 on May 29, up 8.17% in 24 hours. Its daily range stood between $56.43 and $62.31, while 24-hour volume was above $1.02 billion.
The token remained near its May 26 all-time high of $64.44. That price action suggests the market treated the SpaceX event as a product-level risk, not a full rejection of Hyperliquid’s broader trading story.
As crypto.news reported, Hyperliquid recently hit new highs as ETF inflows and prediction-market growth supported demand. HYPE ETFs also crossed $100 million in cumulative net inflows within their first 10 trading sessions, giving the token another demand channel.
Hyperliquid’s token model also remains central to trader interest. As previously reported by crypto.news, the Assistance Fund uses 97% of protocol trading fees for open-market HYPE buybacks. That structure links exchange activity to token demand, though it does not remove trading risk.
Social posts add caution around sentiment
Market commentary stayed bullish after the crash, but some posts should be treated with care. Hyperliquid Daily called Hyperliquid “the full financial layer” and said Wall Street was watching. It also cited a claim that ICE’s CEO called the platform “bigger than NASDAQ” in effect.
The “bigger than NASDAQ” line should be treated as social commentary unless matched with a direct source. It may reflect market excitement more than official guidance.
Trader Ansem wrote that HYPE was “still trading well” near previous highs and said he did not think the token would revisit $50. That view matched the price rebound, but it remains a trader forecast, not confirmed market direction.
