Zcash News Today: Zcash's Privacy Surge Triggers Short Liquidation, Challenges Bitcoin's Dominance

A prominent Zcash (ZEC) short position was completely liquidated in late November 2025, resulting in a total loss exceeding $10.4 million, according to blockchain analytics firm LookOnChain. The incident has intensified discussions around the growing influence of privacy-focused cryptocurrencies and the risks associated with leveraged short positions amid volatile price swings.

The liquidation occurred as ZEC prices surged past key resistance levels, triggering margin calls for traders who had bet against the asset. The affected address, linked to gambling platforms Roobet and Stake.com, held a diversified portfolio of crypto assets, including 73 BTC, 34 ZEC, and 5.6 million XRP. While the ZEC position was partially liquidated, the broader portfolio remains intact, with the BTC and XRP holdings still above their respective liquidation thresholds.

Zcash's recent price action has reignited debates about the role of privacy coins in the crypto market. On November 17, ZEC reclaimed the $700 level after a sharp rebound from a low of $598 the previous day. The rally has drawn both praise and criticism from industry figures. Bitwise CEO Hunter Horsley argued that Zcash's performance challenges the "Bitcoin-only" narrative, while critics like Bit Paine labeled the move a "coordinated pump and dump" of a "VC coin." Meanwhile, Zcash's market capitalization has surged to over $11.2 billion, surpassing Monero (XMR) and positioning it as a top contender in the privacy coin space.

The price surge has also attracted institutional attention. Cypherpunk Technologies, a Zcash-focused treasury company rebranded from Leap Therapeutics, disclosed a significant ZEC accumulation in November. The firm added $18 million worth of ZEC to its holdings, bringing its total network ownership to 1.43%. The investment, led by Winklevoss Capital, underscores growing institutional confidence in Zcash as a hedge against the transparency of Bitcoin. Cypherpunk's CEO emphasized that Zcash represents "digital privacy in asset form," comparing it to Bitcoin's role as "digital gold."

The liquidation event highlights the risks of short selling in a market characterized by rapid price swings and high leverage. Opendoor CEO Kaz Nejatian recently outlined a strategy to "ruin the night" of short sellers by distributing stock warrants to shareholders, a move that could similarly pressure equity markets. While the tactics differ, the underlying theme of short squeeze dynamics remains relevant across asset classes.

Zcash's resurgence has also spurred discussions about integrating privacy features into Bitcoin's protocol through mechanisms like OP_CAT, a dormant opcode that could enable advanced privacy functionalities. Proponents argue that such upgrades are critical for Bitcoin's long-term relevance in an increasingly privacy-conscious world.