Zcash Traders Lose $10.68M as Short Position Collapses

ZEC has risen 177.8% over the past month, causing losses for traders who took short positions.

A short position was liquidated this week with a $10.68 million loss. Hyperliquid currently holds the largest open short position with a mark-to-market loss of $33.87 million.

Lookonchain noted that the trade had achieved 26 consecutive wins and an 89% win rate across 47 trades before liquidation, generating over $9 million in profits. The short covered 12,285 ZEC tokens, valued at $18.31 million previously, with a liquidation price of $1,550.66.

Garrett Jin holds the largest open short position, covering 37,999 ZEC tokens worth $59.37 million, built at an average entry price of $671.05, resulting in a $33.87 million mark-to-market loss. His long Bitcoin position of 1,333 BTC is currently generating $4.41 million in profits, partially offsetting the ZEC losses. Jin's liquidation price for his short is set at $4,789.42, above the all-time high of $3,191.93 recorded in 2016.

Other accounts are also reporting significant losses: one account (0xdd53...2b13) is down $12.53 million on a short of 13,487 ZEC tokens, while another (0xad59...ba81) holds an 8x leveraged short position of 8,425 ZEC at $330.91 entry with a $10.47 million mark-to-market loss.

ZEC has become the strongest performer among top 10 cryptocurrencies, trading around $1,563 and ranking 9th by market capitalization at $2.647 billion. The recent rally was supported by actual buying from both retail whales and institutions. Lookonchain reported one address withdrawing 15,860 ZEC (worth $22.69 million) from Binance in a single day, while another moved 7,081 tokens over two days.

Institutional buying aligned with ZEC ETF inflows, which saw $98.2 million flow into the asset during the week ending September 18, making it the top performer among 14 products. Assets under management grew by 40.5% to $914.5 million.

Sentiment also surged, with Santiment reporting ZEC social media mentions hitting a one-month high on September 17, up 6.8x on X and 1.7x elsewhere compared to the average of the previous day.