ZEC Price Crashes 48.4% as Orchard Pool Bug and Arthur Hayes Exit Trigger Mass Liquidations

TLDR:

• ZEC dropped 48.4% to $272.79 on Binance following the Orchard pool soundness bug discovery.
• Total ZEC liquidations hit $81.91M in 24 hours, with $70.55M from long positions alone.
• Arthur Hayes sold his entire ZEC position after the Orchard exploit news broke publicly.
• A ZEC whale holding $174M saw holdings lose over $70M in value within a single trading day.

Zcash’s native token, ZEC, has dropped 48.4% in 24 hours, trading at $272.79 on Binance. The selloff follows a series of technical emergencies in Zcash’s Orchard shielded pool, including a critical soundness bug and an emergency soft fork.

Liquidations hit $81.91 million, with long positions bearing the bulk of losses at $70.55 million. The crash erased billions in market value and shook confidence in ZEC’s recent bull run.

From Record Highs to Emergency Forks: The ZEC Timeline

Six days ago, ZEC appeared immune to broader market weakness. The token had surged more than 750% and was trading around $540–$560 when a critical soundness bug was discovered in the Orchard pool on May 29.

Shielded Labs uncovered the flaw during a routine audit before any exploit occurred. The find, however, set off a chain of emergency responses that ultimately unwound the rally.

On June 2, developers deployed an emergency soft fork at block 3,363,426. The fork disabled the Orchard pool entirely to prevent a potential double-spend attack.

At that point, ZEC was trading near $587, still holding most of its gains despite the severity of the protocol-level intervention.

By June 3, the NU6.2 hard fork went live, re-enabling Orchard with a patched circuit. Block explorers went dark for roughly four hours during the transition.

Social media was flooded with claims that Zcash was down, though the underlying chain never stopped producing blocks. ZEC pushed higher still, briefly touching $629.

The narrative then shifted sharply on June 4 and 5. Reports spread that Claude Opus 4.8 had in some capacity “broken” Zcash, fueling panic across trading desks.

The crowded long trade began reversing, and ZEC shed more than 30% as leveraged positions unwound rapidly across major exchanges.

The timeline illustrates how quickly sentiment can reverse in crypto markets. A token riding a multi-month rally on privacy narrative strength can lose nearly half its value in under 24 hours once confidence in the underlying protocol wavers.

Arthur Hayes Exits, Whale Absorbs $70M Loss

BitMEX co-founder Arthur Hayes disclosed on X that he had sold his entire ZEC position following the Orchard pool exploit news.

Hayes had previously been one of ZEC’s most vocal proponents, publicly calling for a $10,000 price target. His rapid exit drew wide attention, with traders treating it as a directional signal to cut exposure.

On-chain analytics platform Arkham flagged a notable whale address that held approximately $174 million in ZEC before the crash.

Within 24 hours, the value of those holdings fell to less than half. The whale’s unrealized losses stood at roughly $70 million, with no ZEC sold over the prior six months.

The liquidation data adds further context to the scale of the unwind. CoinGlass recorded $81.91 million in total ZEC liquidations, with $70.55 million coming from long positions. 

Short liquidations accounted for the remaining $11.36 million, reflecting a market that was heavily positioned to the upside heading into the collapse.

Hayes’s exit, combined with his prior sales of HYPE and NEAR, drew commentary on X. One account noted that his so-called “holy trinity” of positions had unwound in under six days, raising questions about broader positioning shifts among prominent crypto traders.

The ZEC crash serves as a reminder that protocol-level vulnerabilities, however quickly patched, can permanently alter market structure around an asset.

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