Zcash News Today: ZEC Short Trims $8M, But $21M Loss Looms on Hyperliquid

The largest ZEC short position on Hyperliquid has been actively reducing its exposure, trimming the size of its bet by approximately $8 million amid volatile market conditions. As of November 17, the position-held-by address 0xd47-now carries an unrealized loss of $21.75 million, down from a peak of over $20 million earlier in the month. The trader initiated the short in early October at an entry price of $184 and has since added to the position as ZEC rallied to current levels near $453.

The move reflects broader turbulence in the crypto derivatives market, where $327 million in liquidations occurred across all networks in the past 12 hours, with longs accounting for $206 million of that total. ZEC-specific liquidations totaled $17.91 million in short positions, driven by a 25% price surge against the broader market. This volatility has intensified scrutiny on Hyperliquid's order books, where the largest ZEC short has been a focal point for analysts tracking risk exposure.

The position's liquidation price has climbed to $1,111, up from $358.44 in early November, as the trader attempts to lower their average entry cost amid the rally. Despite these adjustments, the account remains highly leveraged, with a total nominal value of $74.35 million and a 245% floating loss. The strategy appears to mirror tactics used in other high-profile crypto trades, including a recent $25 million manipulation scheme on the same platform involving the $POPCAT token. That incident, linked to trading firm BTX Capital, highlighted how large players can exploit liquidity imbalances to trigger cascading liquidations - a dynamic now playing out with ZEC.

The ZEC short's actions come amid a broader shift in risk appetite on Hyperliquid, where the platform's largest long position in ZEC - holding a $22.29 million stake at 5x leverage - has simultaneously posted an $8.28 million unrealized profit. This divergence underscores the platform's role as a battleground for bullish and bearish bets, with leverage amplifying both gains and losses.

As the ZEC short continues to adjust its position, the market remains on edge for further liquidation waves. The incident also raises questions about the regulatory scrutiny of platforms like Hyperliquid, where sophisticated traders can execute large-scale manipulations without immediate oversight. For now, the ZEC short's $8 million reduction in exposure signals a recalibration of risk, but not a retreat from the market - highlighting the high-stakes nature of crypto derivatives trading.