ZEC -33.18% in 7 Days as Largest Short Position Turns Profit

On DEC 2 2025, ZEC dropped by 4.89% within 24 hours to reach $332.18, marking a 33.18% decline over the past week, a 23.48% drop in one month, and a 481.94% increase in the past year. These figures highlight the volatile nature of the Zcash market, driven by both speculative shorting activity and broader sentiment shifts.

Largest ZEC Short Position Turns Profit, Realizing Over $5M

Coinbob’s Popular Address Monitor reports that the largest ZEC short position on Hyperliquid has turned profitable, marking a reversal in sentiment for the asset. The short position, initially opened on October 10 at around $184, was scaled up to an average entry of $419. At one point in early October, the position faced a maximum floating loss of nearly $21 million. However, as ZEC prices declined in recent days, the position has seen a turnaround.

By December 2, the net exposure of the short had decreased from $23.21 million to $9.88 million, with more than $5 million in realized gains. The unrealized profit remains at approximately $2.43 million, representing a 125% gain on the remaining exposure. The short position remains among the largest on the platform, with the trader also holding shorts in ETH, MON, and HYPE.

ETH Short Drives Bulk of Profits

While ZEC is a key asset in the trader’s portfolio, the largest source of profit comes from the ETH short position. The trader holds a short of approximately $22.16 million in ETH, with an average entry price of $4,014. This position has yielded a floating profit of $9.52 million, or 643% unrealized gains. This underscores the broader bearish bias of the position and aligns with the overall downward trajectory of major crypto assets.

In addition to ZEC and ETH, the trader has also opened a 3x leveraged short in MON, with an unrealized gain of $1.82 million, or 89%, on a position size of around $6.14 million. This move reinforces the trader’s conviction in a near-term bearish outlook for the ZEC and MON markets.

Broader Market Liquidations and ZEC’s Steepest Drop

Market conditions have been volatile, with over $650 million in liquidations reported in the past 24 hours. ZEC was among the hardest-hit assets, with a steep 20% drop in 24 hours and a 35% weekly decline. The broader crypto market also saw significant losses, including BTC dropping 6% to $85,800, ETH falling 6% to $2,820, and SOL down 7% to $127.

While the decline in ZEC has benefited short sellers, it has raised concerns about the sustainability of the downward trend. Analysts project that if the current bearish momentum persists, further shorting activity could intensify, especially if macroeconomic indicators or regulatory actions fail to provide a clear reversal signal.

Regulatory and Market Environment

The broader regulatory landscape has also contributed to market sentiment. China’s central bank reaffirmed its stance that cryptocurrency remains illegal, signaling an ongoing crackdown on digital asset activities within the country. This regulatory uncertainty has contributed to a risk-off environment for crypto markets, amplifying downward pressure on assets like ZEC.

In summary, ZEC’s 33.18% drop over the past week reflects both structural shorting pressure and broader bearish sentiment in the crypto market. The largest ZEC short position has successfully turned profitable, while additional shorts in ETH and MON have further bolstered the trader’s position. As the market awaits clearer signs of stabilization, the role of large short positions in shaping near-term price action remains critical.