Bearish zcash (ZEC) bets hit record highs as price crashes
Bearish positioning in Zcash surged to a record after ZEC fell as much as 50% in 24 hours following disclosure of a patched vulnerability in the Orchard privacy pool. About $118 million in ZEC liquidations were recorded, a relatively small amount for such a large drop, indicating the selloff was mostly spot-driven rather than a leverage cascade. Open interest hit a record in ZEC terms, and long/short ratios across major venues showed traders skewed bearish, especially on Binance and OKX. The trigger was Shielded Labs’ disclosure that an Orchard flaw, present since May 2022, could have allowed undetectable counterfeit ZEC creation. The bug is now fixed, but it cannot be cryptographically proven whether it was exploited before the patch, leaving uncertainty over the token’s supply. Despite the drawdown, ZEC remains up roughly 490% over the past year. Arthur Hayes said he sold his entire Zcash position.
