(Source: Caixin Finance)

SK hynix, the South Korean storage-chip giant, suffered a brief plunge in pre-market trading on Nextrade for the second time in about a week, again triggering questions from the market about the severe price swings of South Korea’s alternative trading platforms.

On August 6, SK hynix, the South Korean storage-chip giant, suffered a brief plunge in pre-market trading on Nextrade for the second time in about a week, again triggering questions from the market about the severe price volatility of South Korea’s alternative trading platforms. At 8:00 a.m. local time on Thursday, SK hynix traded 11 shares on Nextrade at 1.168 million won per share, plunging 30% from the previous day’s closing price and hitting the day’s lower-limit circuit breaker. By the end of the 50-minute pre-market trading session, the decline narrowed to about 2%.

During the regular trading session on a South Korean exchange that morning, the share price of SK Hynix once fell 9.8%. After U.S. storage chip company SanDisk issued a revenue outlook for the current fiscal period that missed expectations, its stock plunged sharply in after-hours trading, and South Korean chip stocks subsequently weakened broadly. This period of intense volatility closely resembled the move from last Tuesday. At the time, SK Hynix also plunged by as much as 30% in pre-market trading, before narrowing the decline.

That incident caused the price of derivative contracts linked to SK Hynix that are traded on the cryptocurrency exchange Hyperliquid to fall by about 20%. Long positions holding the contract were forced to be closed out within two minutes, totaling nearly $60 million.