Zcash News Today: Zcash's Privacy Surge Shatters $21M Short, Reignites Bitcoin Maximalist Debate

The largest short position on Zcash (ZEC) on derivatives exchange Hyperliquid has spiraled into a crisis, with an unrealized loss exceeding $21 million as of November 17, according to on-chain analytics. The position, initiated at an entry price of $184 in early October and continuously amplified through margin additions, now faces a liquidation price of $1,111-far above the current market price of $640 according to data. Over the past week, the short's nominal value surged from $29.26 million to $43.2 million, compounding losses by $7 million amid Zcash's 140% rally since October.

The position's owner, identified by address 0xd47, has begun closing portions of the trade, reducing its exposure by $8 million over 24 hours through stop-loss orders. Despite this, the remaining $35.34 million position still carries a $14.61 million unrealized loss, with an average entry price of $360. Earlier this month, the account added $5 million in USDC margin to stave off liquidation, a move that temporarily extended survival but failed to offset the mounting losses.

Zcash's meteoric rise has been fueled by renewed investor interest in privacy-focused assets, with the token defying the broader crypto market slump. The Winklevoss-backed treasury firm Cypherpunk Technologies has capitalized on the rally, purchasing an additional $18 million in ZEC at an average price of $602.63, bringing its total holdings to 233,644 ZEC ($150 million) and securing a 1.43% stake in the network. The firm, which rebranded from Leap Therapeutics, now holds over 100% paper gains on its ZEC portfolio, with an average cost basis of $291 per token.

The Zcash surge has reignited debates between Bitcoin maximalists and privacy coin advocates. Bitwise CEO Hunter Horsley dismissed Bitcoin critics' claims that Zcash's rally is a "coordinated pump and dump," while Bitcoin proponents like Bit Paine countered that the 1,500% price surge since October constitutes a "scam" according to reports. Meanwhile, Zcash has overtaken Monero as the leading privacy coin by market capitalization, now valued at $11.2 billion and closing in on Cardano's $17 billion valuation according to market analysis.

Hyperliquid's ZEC short crisis underscores the risks of leveraged trading in volatile markets. The position's initial 5x leverage and subsequent margin additions created a precarious balance sheet, with the account's total nominal value now at $74.35 million-a figure that includes both gains and losses across other assets according to on-chain data. Industry analysts warn that further Zcash volatility could trigger cascading liquidations, particularly as the token remains a top 12 asset by market cap.