Zcash News Today: ZEC's Meteoric Rise Triggers 250% Loss Abyss for Hyperliquid's Top Short

Hyperliquid's largest Zcash (ZEC) short position has swelled to an unrealized loss of $14.5 million as the privacy-focused cryptocurrency surges past $580, according to on-chain analytics firm HyperInsight. The whale wallet (0xd47), which initiated its short position during ZEC's October 11 flash crash, now faces a 250% loss on a $29.26 million bet, having gradually "averaged up" during recent price gains, according to a Lookonchain analysis. This marks a dramatic reversal for the address, which had previously booked over 100% floating profits before the October downturn, that same analysis found.

The ZEC short's woes come amid a broader rally for the asset, which has surged 48.74% weekly and 17% in the last seven days, per a ZEC price outlook. Zcash's market capitalization now exceeds $8.6 billion, surpassing Sui (SUI) and Hedera (HBAR) to rank 26th globally, according to FXStreet. Key drivers include renewed institutional interest and technical upgrades enabling Solana light-client integration, which could facilitate cross-chain privacy tools, a point highlighted by U.Today.

. Helius CEO Mert Mumtaz and investor Naval Ravikant have also fueled speculation about ZEC's potential, with the latter touting its zk-SNARKs technology as a privacy benchmark, as reported by Coinotag.

Hyperliquid itself remains a focal point in the crypto derivatives market, having recently executed a $780 million token buyback that generated a 65% return, according to AmbCrypto. The perpetuals DEX's success stems from its revenue-generating model, where users require HYPE tokens for fee discounts, creating organic demand, as AmbCrypto notes. However, HYPE's price has dipped 4.33% in the past week, trading at $38.43 amid broader crypto market volatility, a decline also detailed by AmbCrypto.

ZEC's price action has further intensified short-covering pressures. Open interest for ZEC futures hit an all-time high of $773.84 million, with long-to-short ratios nearing monthly peaks, per FXStreet's analysis. Analysts note that ZEC's reduced exchange float—down 40% since mid-2025—has amplified its sensitivity to buying inflows, a trend Coinotag highlighted. A whale wallet (0x96ea) that entered a $16.3 million long position three days ago is currently up $2.7 million, reflecting the asset's bullish momentum noted in the ZEC price outlook.

While ZEC bulls eye a $575–$580 breakout level, FXStreet's forecast suggests upside potential, though short-sellers remain exposed to further losses. The 0xd47 address's ZEC position is now the largest on Hyperliquid, dwarfing the top long position (0x549) of $13.6 million, per the earlier Lookonchain analysis. Meanwhile, Hyperliquid's assistance fund—holding 3.44% of the HYPE supply—continues to distribute buybacks, though its impact on demand appears limited as HYPE declines for a seventh consecutive day, according to U.Today.