SK Hynix plunges as the US-South Korea premium surges to 47%, with trading accounts executing the relevant transaction posting an unrealized profit of $5.21 million.

According to TradingBeats monitoring, Hyperliquid’s Shanghai-listed Korean stock mapping contract SKHX fell approximately 10.46% since 00:00 today, currently trading at $938.71, while its US-listed ADR mapping contract SKHY dropped around 7.80% over the same period, with a 2.66 percentage point gap in declines. Based on the conversion ratio, SKHY’s implied premium relative to SKHX has expanded from roughly 42.89% at 00:00 today to 47.14%, a rise of about 4.25 percentage points, with the premium itself increasing by around 9.9%. Over the same period, SKHX fell 10.46% while SKHY dropped 7.80%, and the latter’s relative resilience further widened the price gap between the two contracts. Against the backdrop of the price divergence between the two regions, a whale trader who shorted the Korean stock and went long on the US ADR has reaped substantial profits. The account currently holds: - SKHX short position: $17.59 million, average price of $1,293.84, with an unrealized profit of approximately $6.6549 million; - SKHY long position: $6.59 million, average price of $175.04, with an unrealized loss of around $1.7636 million. After netting the two legs, the unrealized net profit is roughly $4.8913 million. This account is not a fully hedged spread trade. Converted based on the number of underlying shares, its ADR long position only covers about 25.5% of the Korean stock short position, leaving a large net short exposure overall. A large portion of the current profit still comes from SKHX’s sharp decline. It is reported that the whale also added approximately $356,100 to its SKHX short position today, while reducing its SKHY long position by around $1.3973 million, further increasing the directional short bias of the portfolio. After including another DRAM short position with an unrealized profit of about $315,100, the net unrealized profit of the account’s three positions totals approximately $5.2063 million.