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Hyperliquid’s pre-IPO SpaceX contracts suffers 45% flash crash, liquidating $1.5 million
A massive selloff in a SpaceX crypto token wiped out hundreds of retail traders in 30 minutes because the market lacked enough cash to absorb the shock.
Updated May 28, 2026, 5:31 p.m. Published May 28, 2026, 5:28 p.m. 2 min read
What to know:
- A violent 45% flash crash wiped out hundreds of retail traders when a SpaceX-linked crypto contract plummeted in just 30 minutes, wiping out $1.51 million in value and catching small-time investors completely off guard.
- The market was too thin to handle one massive trade because the token lacked deep financial backing, meaning a single giant sell order absorbed the market’s available cash and sent the price into a temporary freefall.
- High risks face everyday investors ahead of a potential IPO as the crash heavily burned retail traders using leverage on a highly speculative token that has no official public price benchmark.
The median liquidated position held just $31 in margin, pointing to a retail-heavy user base taking on 3x leverage with minimal cushion.
The Hyperliquid SPACEX-USDH is a crypto perpetual contract for SpaceX’s market valuation. As the company is private, people cannot buy its stock ahead of its anticipated IPO. To get around this, Hyperliquid created a synthetic perpetual contract that allows investors to bet on what they think the company will be worth.
