Perpetual futures linked to SK Hynix’s American depositary receipts (ADRs) suffered a sudden flash crash on Hyperliquid, falling 20% in just one minute before quickly recovering back above $1,000.

The sharp move occurred shortly before the South Korean semiconductor company’s shares declined in its local market. The Hyperliquid contract tracks SK Hynix’s Seoul-listed shares through ADR-based exposure, following the company’s recent Nasdaq debut.

According to Hyperliquid data, the perpetual contract plunged to $900 between 23:00 UTC and 23:01 UTC before bouncing back above the $1,000 level in the next minute. The contract is priced in and settled using the dollar-pegged stablecoin USDC and was last trading near $1,092.

About an hour later, South Korea’s stock market opened under pressure, with semiconductor companies driving the decline. SK Hynix shares finished the session 15% lower at 1,550,000 won ($1,762), while Samsung Electronics and Hyundai Motor also suffered losses. The benchmark Kospi index dropped 11%.

SK Hynix ADRs, with 10 ADRs representing one ordinary share, declined 4.5% in pre-market trading to $136.51.

Hyperliquid, one of the largest decentralized exchanges focused on perpetual futures, has become increasingly popular among traders seeking exposure to traditional financial assets through crypto-based derivatives. The platform gained additional attention following the escalation of the Iran conflict in late February. Hyperliquid had not released a statement on the flash crash at the time of reporting.

Sharp price disruptions are relatively common across crypto exchanges, particularly during the transition between U.S. market hours and the opening of Asian markets. Lower trading liquidity during these periods can amplify price swings because exchanges may struggle to absorb large orders without significant market impact.

SK Hynix, a leading global supplier of high-bandwidth memory (HBM) chips used in Nvidia’s AI processors, has faced substantial selling pressure this month. The stock has declined nearly 48% from its June 26 high of 1,947 won.

The weakness has extended beyond SK Hynix, with investor enthusiasm for artificial intelligence stocks also cooling on Wall Street. Nvidia shares dropped 5% on Monday after reports indicated that the AI chipmaker could provide a financial backstop of roughly $250 billion for an OpenAI-supported data center initiative.

The flash crash highlights the volatility risks involved in trading traditional asset exposure through crypto derivatives, especially during periods of reduced market liquidity.