Zcash Latest Updates: ZEC's Soaring Surge Causes 250% Downturn for Hyperliquid's Leading Short Position

Hyperliquid's largest

(ZEC) short position has ballooned to an unrealized deficit of $14.5 million as the privacy-centric cryptocurrency climbs above $580, based on data from on-chain analytics provider . The whale wallet (0xd47), which began shorting ZEC during the October 11 flash crash, is now facing a 250% loss on its $29.26 million wager, having incrementally increased its position as prices rose, according to a . This represents a sharp turnaround for the address, which had previously seen over 100% floating gains before the October drop, the same analysis revealed.

The

short's troubles come as the asset enjoys a broader rally, jumping 48.74% over the past week and 17% in the last seven days, according to a . Zcash's market cap has now surpassed $8.6 billion, overtaking (SUI) and (HBAR) to claim the 26th spot globally, as reported by . Major factors include renewed institutional interest and technical improvements that allow light-client support, potentially paving the way for cross-chain privacy solutions, a point emphasized by . . Helius CEO Mert Mumtaz and investor Naval Ravikant have also contributed to the buzz around ZEC, with Ravikant praising its zk-SNARKs as a standard for privacy, according to .

Hyperliquid continues to be a key player in the crypto derivatives space, having recently completed a $780 million token repurchase that yielded a 65% gain, as reported by

. The perpetual DEX's strong performance is attributed to its revenue model, which requires users to hold HYPE tokens for fee reductions, thereby driving natural demand, AmbCrypto notes. Despite this, HYPE's value has dropped 4.33% over the past week, now trading at $38.43 amid wider crypto market swings, a decline also covered by AmbCrypto.

ZEC's recent price surge has intensified pressure on short sellers to cover positions. Open interest in ZEC futures reached a record $773.84 million, with the long-to-short ratio approaching monthly highs, according to FXStreet's research. Analysts point out that ZEC's circulating supply on exchanges has fallen by 40% since mid-2025, making it more sensitive to buying activity, a trend highlighted by Coinotag. A whale wallet (0x96ea) that opened a $16.3 million long position three days ago is currently up $2.7 million, underscoring the asset's strong

as noted in the ZEC price outlook.

While ZEC bulls are targeting a breakout above the $575–$580 range, FXStreet's projections indicate further upside, though short sellers remain at risk of deeper losses. The 0xd47 wallet's ZEC short is now the largest position on Hyperliquid, far exceeding the biggest long (0x549) at $13.6 million, according to the earlier Lookonchain report. Meanwhile, Hyperliquid's support fund, which holds 3.44% of HYPE's total supply, continues to conduct buybacks, but its effect on demand seems limited as HYPE declines for a seventh straight day, U.Today reports.