A single share of SK Hynix Inc. was traded at 1.09 million Korean won ($801.40) in the pre-market session on Tuesday, a price 30% lower than its previous day's closing price. This unusual trade, executed on the Nextrade bourse, triggered an automated trading algorithm at an undisclosed cryptocurrency firm, leading to $60 million in losses.
The algorithm, designed to hedge exposure to Korean stocks, interpreted the single low-priced share as a legitimate market signal, causing it to liquidate substantial crypto positions. While the pre-market trade was later deemed a "rogue price" and did not impact the opening price on the Korea Exchange, the damage to the crypto firm was already done. This incident highlights the risks associated with automated trading systems and their susceptibility to anomalous data.
Separately, SK Hynix has experienced significant volatility in its stock price recently. On July 29, the company's shares dropped nearly 7% in pre-market trading after its second-quarter results fell below market expectations, despite strong year-over-year revenue and operating profit growth. Earlier, on July 13, its shares declined in Seoul following a highly anticipated U.S. trading debut, and on July 14, they rebounded after an early plunge. On June 8, SK Hynix, along with Samsung Electronics, tumbled 7-8% in pre-market trading due to concerns over U.S. job data, chip shocks, and potential peaking of the AI chip boom. Analysts noted that heightened volatility could persist, advising against joining a sell-off.
