The dangers associated with trading pre IPO markets were once again exposed following a massive flash crash involving the SpaceX market on Hyperliquid.
Through its HIP 3 framework, Hyperliquid allows independent developers to create markets that utilize the platform’s existing infrastructure and liquidity. This setup has enabled the launch of tokenized stock markets and speculative pre markets tied to companies that have not yet gone public.
One of the platforms operating within this ecosystem is Ventuals, which offers users the ability to trade pre IPO markets for major firms including OpenAI and SpaceX.
The SPACEX USDH trading pair on Hyperliquid represents trader speculation on the perceived valuation of Elon Musk’s SpaceX before any potential public listing. The market has maintained strong activity for an extended period, often recording around $2.9 million in open interest alongside more than $5 million in daily trading volume.
Yesterday, the market experienced a dramatic flash crash of nearly 45%, with the price collapsing from approximately $2,200 to nearly $1,200 within a short period. The sudden move triggered the liquidation of more than $1.5 million in leveraged long positions affecting hundreds of traders.
Ventuals, the provider behind the market, later addressed the incident through its official X account and suggested that affected users may receive compensation.
According to the statement, the issue stemmed from incorrect data provided by an offchain oracle source, which caused the oracle and market prices to shift sharply. The error ultimately resulted in the forced liquidation of several user positions.
The platform stated that immediate measures have already been implemented to prevent similar incidents across its pre IPO markets. Ventuals also confirmed that it is reviewing the impact on affected traders to determine appropriate compensation.
UPDATE
Ventuals has since confirmed that impacted users will receive compensation within the next 48 hours.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
