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Zcash News Today: ZEC Whale Risks $5M as Collateral—Will the Short Position Hold if Privacy Coins Surge?

Zcash News Today: ZEC Whale Risks $5M as Collateral—Will the Short Position Hold if Privacy Coins Surge?

Bitget-RWA2025/11/19 08:52
By:Bitget-RWA

- A ZEC short whale on Hyperliquid faces $13.77M losses as Zcash surges past $700, with 10x leverage and a $1,084 liquidation price. - The whale added $5M USDC collateral to sustain the position, expanding the short size to $43.2M amid ZEC's 1,500% October-November rally. - ZEC's rise to $11.2B market cap, driven by institutional interest and privacy coin adoption, highlights risks of leveraged bets in volatile crypto markets. - The position reflects broader on-chain dynamics, with the whale also holding p

The largest

short on Hyperliquid, a leading crypto derivatives platform, as of November 19, according to blockchain analytics provider Lookonchain. This position, initiated at $360 per (ZEC) in late October, has come under increasing strain as the token’s value soared above $700, . The trader has already lost over $536,000 to funding fees alone, .

The address 0xd47...51A91, which holds the short, is using 10x leverage and faces liquidation if ZEC hits $1,084. Despite mounting losses, the trader has

, including a $5 million deposit on November 16 to support the position. By averaging down, the short has grown from $29.26 million in early November to $43.2 million by November 19, during that time. This address has been holding the position since October 10, initially entering at just $184, and has steadily increased exposure as ZEC’s price has surged .

ZEC’s price movement has been a major factor in the short’s difficulties. The token

in late November after soaring 1,500% since October, making it the 12th-largest crypto by market cap, now exceeding $11.2 billion. The rally has attracted institutional interest, , who revealed ZEC is the second-largest liquid holding in his family office, Maelstrom. Meanwhile, biotech company Leap Therapeutics , a ZEC treasury firm, with support from the Winklevoss twins, further boosting market excitement.

Zcash News Today: ZEC Whale Risks $5M as Collateral—Will the Short Position Hold if Privacy Coins Surge? image 0

The challenges faced by this short reflect broader trends in on-chain activity. Hyperliquid’s records show the same trader also holds a 15x leveraged ETH short valued at $26 million,

, along with several leveraged shorts in and . However, the ZEC short remains the riskiest, with its liquidation threshold now only 34% above the current $686 price. on whether ZEC retreats from its recent highs, a scenario that seems less likely as privacy coins gain renewed attention and debates continue over Bitcoin’s OP_CAT opcode.

The persistence of this short underscores the dangers of high leverage in fast-moving markets. While the trader has so far avoided liquidation by aggressively adding collateral, any further rise in ZEC could force a partial or complete exit. This situation reflects a wider market pattern, where leveraged traders are being challenged as privacy-focused cryptocurrencies like ZEC gain momentum amid regulatory and technological developments.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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