Zcash Rally Crushes Shorts as ZEC Jumps 178%. Source: Image by Gabrielli Pereira from Pixabay
Zcash (ZEC) has surged 177.8% over the past month, inflicting heavy losses on traders betting against the privacy-focused cryptocurrency as strong spot demand and institutional inflows fuel its rally.
One prominent ZEC short was closed this week with a $10.68 million loss. The trader previously recorded 26 consecutive winning trades and an 89% win rate across 47 positions, generating more than $9 million in profits before the Zcash trade reversed those gains.
The position involved 12,285 ZEC and was previously valued at $18.31 million, with liquidation set at $1,550.66. Hyperliquid data indicates the account has since closed all positions.
Meanwhile, Garrett Jin holds the largest remaining ZEC short on Hyperliquid. His 37,999 ZEC position, worth roughly $59.37 million, was opened at an average price of $671.05 and currently carries an unrealized loss of about $33.87 million. A 1,333 BTC long showing a $4.41 million profit has partially offset the losses.
Other Zcash short sellers are also under pressure. One wallet is down approximately $12.53 million on a 13,487 ZEC position entered at $644.39, while another leveraged short involving 8,425 ZEC is sitting on a $10.47 million unrealized loss.
ZEC is trading near $1,563, with its market capitalization reaching approximately $26.47 billion and placing it ninth among cryptocurrencies by market value.
Buying activity has supported the rally. Lookonchain reported that one wallet withdrew 15,860 ZEC worth $22.69 million from Binance in a single day, while another moved 7,081 ZEC over two days.
Institutional demand has also strengthened. Zcash ETFs attracted $98.2 million during the week ending September 18, the largest inflow among 14 tracked products, while assets increased 40.5% to $914.5 million.
Social interest has surged alongside the price. Santiment reported Zcash social volume reached a one-month high on September 17. With Hyperliquid ZEC perpetual open interest around 574,045 ZEC, worth roughly $885 million, leveraged traders remain heavily exposed as the market watches whether spot buying can sustain the rally.