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ZEC fell 64%, and the selling started before the bug was found

Hyperliquid data shows volume at 12-13x normal on May 26, three days before private discovery.

Zcash patched a bug in its privacy layer that could have let someone mint unlimited ZEC, undetected for four years.

Jun 8, 2026
Market Structure
RWAs
Authors
Olivia Denk, Research, Allium
Olivia Denk
Research
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Key takeaways

  1. ZEC fell 64%, from a $685 high on May 25 to a $247 low on June 5.
  2. The selling started May 26, three days before the bug was privately discovered, at 12 to 13x normal hourly volume.
  3. $560M traded in a single hour on June 5.
  4. The bug had been live for four years, since Orchard launched in May 2022.
  5. The five largest profitable short positions were all opened on May 25 or 26.

Zcash patched a bug in its privacy layer that could have let someone mint unlimited ZEC, undetected for four years. Because every transaction is hidden, nobody can prove the bug was never used. ZEC fell 64%, and Allium's Hyperliquid data shows the selling started three days before the bug was even privately discovered.

What this report shows:

  • The selling began before the announcement, when trading volume spiked to 12-13x normal on May 26
  • The heaviest selling came after the June 3 patch, not before it, $560M in a single hour as the price hit $247
  • Why a clean fix could not settle it, and what the market is actually pricing

Informational only. Not investment advice.

ZEC fell 64%, and the selling started before the bug was found

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