Zcash News Today: ZEC Bulls and Bears Clash as $32M Long Challenges $19.8M Short on Hyperliquid

The largest ZEC short seller on the Hyperliquid platform has taken a strategic step, taking profit on a $3 million short in ETH on December 26 according to the report. Following this move, the trader reversed its position, rolling it into additional short exposure in ZEC and MON. The shift reflects a broader trend as ZEC's price rose nearly 22% since late December, triggering a surge in open interest and speculative activity.

The whale's ZEC short position, valued at $19.84 million, has seen substantial losses, with a floating loss of $4.51 million as of December 29. The trader, one of the most active in shorting ZEC since October, had previously reduced its position in mid-December before ramping up again. This move highlights the high-stakes nature of the ZEC market, where large players are adjusting positions rapidly amid price volatility.

Meanwhile, a prominent ZEC long, 0x6b2, has significantly boosted its position in the last 24 hours. The account, holding a 3x leveraged long at an average entry price of $520, now holds $32.2 million in ZEC with $6.53 million in floating profit. This has positioned the address as the largest on-chain ZEC long, directly opposing the dominant short position.

Why the Standoff Happened

The ZEC market has become a battlefield for large traders, with both long and short positions intensifying in recent weeks. ZEC's price surge to nearly $500 on December 29 has sparked aggressive activity on Hyperliquid, where open interest spiked in response to the bullish momentum. The largest ZEC short account, which has been active since October, has continuously adjusted its position, reducing and then significantly increasing exposure.

According to HyperInsight monitoring, the whale initially cut its ZEC short from $16.5 million to $9.1 million on December 17. However, it quickly returned to the market, adding $19.84 million in new shorts at an average entry price of $417. The decision to add to the position amid a price rally suggests a bearish outlook for ZEC in the near term, despite its recent gains.

The trader's overall short exposure has expanded significantly. It now holds $163 million in short positions across ETH, ZEC, and MON, making it the largest short holder on the platform. This move contrasts with bullish investors, such as the 0x6b2 address, who continue to accumulate long positions as ZEC surges.

How Markets Reacted

The ZEC short vs. long showdown has drawn attention from on-chain analysts and traders monitoring the platform. The bullish momentum has been fueled by increased participation from leveraged longs, while the bearish camp remains committed to aggressive shorting strategies.

On Hyperliquid, the ZEC open interest has increased sharply, reflecting heightened speculative activity. The 0x6b2 long position, now at $32.2 million with an average entry of $431, has earned $6.53 million in floating profit, marking it as one of the most successful long positions in recent days. This has created a stark contrast with the top ZEC short, which faces substantial unrealized losses.

The broader market context suggests that ZEC is in a period of consolidation after a sharp rise in late December. While some traders are capitalizing on the momentum, others are preparing for a potential correction. The ZEC short whale's decision to roll its ETH position into additional ZEC shorts signals a belief that the upward trend may not hold, at least in the near term.

What Analysts Are Watching

Analysts are closely watching the ZEC positioning as it could influence price action in the coming weeks. The presence of large opposing positions typically indicates high volatility, as either side could trigger a sharp move in one direction. On-chain data from HyperInsight and Lookonchain shows that both bullish and bearish traders are increasing leverage and exposure, raising the likelihood of rapid price swings.

For ZEC, the key resistance level now appears to be around $520, where the largest long position is currently averaging in. A break above this level could embolden longs, while a pullback below $417 would likely trigger liquidations for the top short positions. The outcome will depend on how institutional and retail traders respond to the evolving market conditions.

As the ZEC price continues to fluctuate, the battle between the largest short and the growing long positions will remain a focal point for traders and analysts. The outcome of this standoff could determine the next major price direction for ZEC in early 2026.