TradeXYZ, the leading HIP-3 market provider on Hyperliquid, is being called out by its competitors after a single user triggered a 3.5% selloff in the XYZ100 market on Sunday afternoon.
The move appeared to be a planned attack, as a newly funded wallet shorted $10 million of the XYZ100, which tracks Nasdaq (NQ) futures, and successfully liquidated $13 million of long positions despite the NQ not trading on Sundays.
Prices rebounded closer to the oracle price within 30 minutes, but critics and competitors were quick to call out the platform, lamenting TradeXYZ's 24/7 markets.
Ostium Labs founder Kaledora Kiernan-Linn, who’s no stranger to conflict with Hyperliquid maxis, posted about volatility and said, “A good example of why weekend closure on perps that don't have a 24/7 spot market is a feature, not a bug!” - referring to Ostium’s tokenized equity trading structure.
“A straightforward solution here is to reference the underlying spot market's hours directly. This can be done by baking in a function that checks market hours before executing any trade, creating a programmatic break in trading during which no new trades can be placed. This limits the probability of wild movements on the perp, which are most likely when it is untethered to the spot market, that could otherwise liquidate unsuspecting holders,” Kiernan-Linn added.
The team behind TradeXYZ has yet to comment publicly on the incident.
