SK Hynix ADR premium narrowed by 4 percentage points; whales that had expected the spread to widen chose to exit.

According to Hyperinsight’s monitoring, as of press time, Hyperliquid’s Shanghai-listed SK Hynix (SKHX) trades at $1069.5, while its U.S. ADR contract (SKHY) stands at $137.91. Converted, the ADR equivalent price is roughly $1379.1, a 28.9% premium over SKHX. This premium narrowed by about 4 percentage points from around 33.0% yesterday; over the same period, SKHX fell 13.5% and SKHY dropped 16.2%. The whale wallet starting with 0x434, which earlier executed a spread trade of "short SKHX, long SKHY" to bet on widening spreads, has closed out both positions entirely ahead of the earnings report, generating an approximate total profit of $442,700: - At 15:00 today, it sold 20,000 SKHY long positions at an average price of ~$137.6, for a total transaction value of ~$2.753 million, logging a loss of ~$133,000; - In the same window, it covered 4,500 SKHX short positions at an average price of ~$1071.1, for a total transaction value of ~$4.82 million, logging a profit of ~$576,000. Calculated from the average entry price, the implied ADR premium at its cost was around 20.4%, while the average exit price corresponds to a ~28.5% premium, meaning the spread widening trade has been realized. However, this position was not an equal hedge: the original SKHY long position only covered roughly 44.4% of the SKHX short position, with profits coming partially from the decline of the Korean stock mapping contract. SK Hynix will release its second-quarter earnings at 9:00 KST (8:00 Beijing Time). The whale completed its exit roughly 17 hours ahead of the earnings report, signaling it has stopped betting on further premium expansion, likely to prevent the spread from converging further ahead of the earnings window.