BlockBeats reported on July 15, citing Hyperinsight monitoring, that the Hynix-linked U.S. equity instrument SKHY on Hyperliquid was quoted at $181.58, while the Korea-listed proxy SKHX was priced at $1,358.50. Based on a conversion ratio of 0.1 share of the Korean common stock for each SKHY ADS, the implied on-chain ADR premium was about 33.7%.
Activity across the pair was sizable. Over the past 24 hours, SKHY posted about $450 million in trading volume and roughly $121 million in open interest. SKHX recorded about $1.213 billion in trading volume and around $425 million in open interest. Combined turnover across the two instruments came to about $1.663 billion, with total open positions at roughly $546 million.
TSMC used as the reference point
Hyperinsight used Taiwan Semiconductor Manufacturing Co. as a comparison. Based on a TSMC ADR price of $420.39, a Taipei-listed common share price of NT$2,440, a USD/TWD rate of about 32.16, and a conversion of five common shares for each ADR, TSMC’s current ADR premium works out to about 10.8%.
On that basis, the Hynix premium is roughly 3.1 times as large. Hyperinsight also pointed to historical TSMC data, noting that during the dot-com bubble the company’s ADR premium rose from around 70% to nearly 90%. When TSMC issued additional ADS in June 2000, the company disclosed an issuance premium of 43% in SEC filings. Against that yardstick, Hynix’s current 33.7% premium is about 78% of TSMC’s issuance-era level, but only around 40% to 50% of the bubble peak.
$32.4 million in convergence positions remain under pressure
Large traders have built two opposing sets of positions around the spread. The convergence side, structured as long SKHX and short SKHY, was held by five addresses with a combined position size of about $32.4 million. Together, those accounts were showing an unrealized loss of about $1.117 million.
Among the largest positions, the address beginning with 0xf517 had a two-sided size of about $11.181 million and an unrealized loss of about $601,000, with an SKHY-to-SKHX quantity ratio of roughly 15.9:1. The address beginning with 0x2577 had a two-sided size of about $8.008 million and an unrealized loss of about $285,000, with a ratio of around 17.7:1.
On the widening side, only one address was identified. That account held a position of about $9.719 million and was up about $127,000 on paper through a long SKHY and short SKHX structure.
The address beginning with 0x434f was running the trade with 4x leverage short SKHX and 8x leverage long SKHY. Its two-sided size was about $9.71 million, the quantity ratio was roughly 3.6:1, and the position kept a net long Hynix exposure.
Funding rates also favored the widening trade
Funding added another layer of pressure for convergence traders. SKHX carried an hourly funding rate of about +0.00773%, while SKHY was at about -0.00264%. Under that setup, the convergence basket had to pay funding on both sides. Based on current positions, the five major addresses were estimated to be paying about $1,453 per hour in total.
The widening trade sat on the opposite side of that structure and could collect funding on both legs, at about $588 per hour. By Hyperinsight’s count, the convergence trade is now being eroded by two forces at once: unrealized losses and double-sided funding payments.