Decentralized derivatives platform Hyperliquid has launched a pre-IPO perpetual contract for SpaceX (SPCX-USDC) via Trade.xyz, igniting global regulatory debate. This contract allows leveraged trading without owning SpaceX shares or receiving company authorization. Initially set at a reference price of $150, the contract surged to $216, implying a valuation of approximately $1.78 trillion. The contract, settled in USDC and priced via market oracles, is not linked to SpaceX's actual financials or equity structure. Despite SpaceX's non-participation, its valuation is being actively traded on-chain, raising questions about the role of decentralized derivatives in private company price discovery. Hyperliquid's HIP-3 mechanism underpins this market, highlighting a potential shift in how private valuations are determined, while regulatory frameworks lag behind.