SK Hynix encountered a 30% flash crash in pre-market trading on Nextrade today, but the decline subsequently narrowed.

Chip giant SK Hynix Inc. experienced its second brief stock price crash within a week, raising new questions about trading volatility on the Korean alternative securities exchange. According to data from Nextrade, a new type of exchange that launched last year and accommodates trading before and after regular trading hours, SK Hynix traded 11 shares at a price of 1.168 million won per share at 8 AM local time, hitting the daily limit of a 30% drop. By the end of the 50-minute pre-market session, the stock's decline narrowed to about 2%. On Thursday morning, during trading on the main board of the Korea Exchange, the chipmaker's intraday maximum decline reached 10%, affected by a downturn in U.S. stocks, leading to a general weakness in the entire chip sector. The sharp fluctuations in stock prices on Nextrade were strikingly similar to the situation last Tuesday, when the stock also plummeted by 30% in the pre-market session and then saw a reduction in its decline. At the time of the incident, holders of derivative contracts linked to SK Hynix at a cryptocurrency exchange liquidated nearly 60 million dollars in long positions within two minutes. Since its launch in South Korea last year, Nextrade has rapidly expanded its market share due to longer trading hours and lower fees. However, anomalous events like SK Hynix's flash crash have prompted closer scrutiny of this alternative exchange, with market concerns that such trading could disrupt the formation of fair prices.