SPACEX, a popular perpetual futures contract (perp) on the Hyperliquid leveraged crypto exchange that is loosely connected to the valuation of Elon Musk’s rocket company, lost nearly half its value within 7 minutes yesterday, then recovered almost all of that loss 10 minutes later.
Overnight, some crypto influencers tried to link the flash-crash to the Blue Origin New Glenn explosion that lit up Cape Canaveral later that night. The timing, however, did not align.
The SpaceX market on Hyperliquid is deployed by Ventuals, a pre-IPO perpetuals protocol. Perps are allegedly priced at one billionth of the valuation of the private company.
At 11:37 AM New York time and prior, the unofficial SpaceX contract traded near $2,286, implying a valuation of $2.3 trillion. By 11:44 AM, the perp had crashed to $1,299.10. By 11:54 AM it had snapped back to $2,225.30.
The perp is denominated in USDH, Hyperliquid’s own stablecoin.
A similar SpaceX Ventuals perp listed on BingX denominated in USDT, the world’s most popular stablecoin, dropped harder. It was trading at $2,524.70 at 11:37 AM, then collapsed to $1,269.70 seven minutes later, before recovering to $2,208.40 by 11:54 AM.
Ventuals acknowledges its SPACEX flash-crash
Ventuals acknowledged the incident on X about an hour after the bottom. “The offchain data provider used as a component of the oracle price returned incorrect data, which caused the market’s oracle and mark price to move dramatically.”
According to Ventuals’ documentation, the name of that provider is Notice, whose possibly corrected chart does not contain the flash-crash data that Ventuals used today.
Ventuals said it had taken steps to prevent recurrence across its pre-IPO perps and was evaluating compensation. Hours later, it vowed to pay for its mistake. “Quick update – affected users will be compensated within the next 48 hours.”
By Hyperliquid’s own data, 1,393 positions held by about 400 wallets were force-liquidated for $1.51 million in notional value.
The Blue Origin coincidence that wasn’t
The Hyperliquid-listed SPACEX perpetual contract bottomed at 11:44 AM New York time. In contrast, Blue Origin’s New Glenn rocket exploded around 9:00 PM New York time, during a hot-fire test. More than nine hours separated the two events.
Jeff Bezos posted on X late that night. “It’s too early to know the root cause but we’re already working to find it. Very rough day, but we’ll rebuild whatever needs rebuilding and get back to flying. It’s worth it.”
The two events share a date and a corporate-rival framing, but little else.
Read more: Outdated algorithm caused $650M excess losses on Hyperliquid, report
SpaceX perp broke on Hyperliquid
Ventuals lists the SpaceX token under HIP-3, Hyperliquid’s builder-deployed perpetuals standard. Third parties can spin up new perp tokens on its matching engine.
Because SpaceX is privately held and has no public price, Ventuals constructs its own oracle. The recipe blends a feed from private-markets vendor Notice with a two-hour moving average of the contract’s mark price. Notice’s feed earns one-third weight, although traders are free to weight its feed by any amount when making trading decisions. The Exponential Moving Average (EMA) of Hyperliquid trading prices earns two-thirds weight.
When the Notice feed returned a bad number Thursday morning, both the oracle and the mark price jolted lower. The contract collapsed inside the 20% downward price band Ventuals enforces relative to the oracle. Then it collapsed again as the oracle itself kept moving. Retail traders running 3x leverage — the max leverage available under the perp at the time — were blindsided.
Ventuals’ own documentation is direct about what these markets are. Holders, it states, “do not have any underlying economic ownership in the company – you’re merely speculating on its valuation change.” SpaceX has not authorized the contract, receives no proceeds from it, and has no formal relationship with Ventuals or Hyperliquid.
Protos previously documented how the same Ventuals architecture briefly charged Anthropic-perp longs annualized funding rates of 8,700% over a weekend.
The mechanics of a flash crash are similar. When crypto adds financial leverage to opaque data oracles, even small errors can liquidate markets worth millions of dollars.
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