ZEC Up 8.55% in 24 Hours Amid Major Short Covering and Position Reversals

On DEC 2 2025, ZEC rose by 8.55% within 24 hours to reach $346.59, ZEC dropped by 23.78% within 7 days, dropped by 12.71% within 1 month, and rose by 563.82% within 1 year.

Major ZEC Short Position Turns Profitable, Realizes $5M+ in Gains

A prominent ZEC short position has flipped from a loss to a significant profit in recent trading days, with the position reducing its exposure from $23.21 million to $9.88 million. This reduction has resulted in over $5 million in realized gains, marking a sharp reversal for a position that previously faced a peak floating loss of nearly $21 million in early October.

The short was initially opened on October 10 at a price of approximately $184, with subsequent additions to the position driving the average entry price up to $419. The position remained under pressure for much of October before a sustained price decline allowed for a profitable exit strategy to unfold. As of the latest monitoring, the position still holds an unrealized profit of $2.43 million, representing a 125% gain.

Position Diversified Across Multiple Assets, ETH Shorts Drive Majority of Profits

The same address holds multiple short positions across other major assets, including ETH, MON, and HYPE, reflecting a broader bearish stance on the market. Among these, ETH shorts are the most significant contributor to overall gains. The ETH short position, averaging an entry price of $4,014, currently holds a floating profit of $9.52 million — a 643% gain — on a position size of around $22.16 million.

A newly initiated 3x leveraged short on MON has also contributed positively, with a position size of approximately $6.14 million and an unrealized gain of $1.82 million (89%). This position remains the largest short in both ZEC and MON on Hyperliquid.

ZEC Volatility and Position Reversals Highlight Strong Short Liquidation Activity

The ZEC short position in question has been a focal point of recent market discussions due to its size and profitability. The rapid reversal from a losing position to a highly profitable one underscores the volatile nature of the asset and the strategic timing of the short liquidation.

This short was initially at risk of a $3 million drawdown, with the position facing a maximum floating loss of $21 million in October. The recent price correction has allowed the position to not only recover those losses but also turn them into a net profit. The position’s success demonstrates how liquidity shifts and price swings can significantly impact large, leveraged positions.

Broader Market Context and Position Monitoring

ZEC has experienced significant price swings over the past month, with a 23.78% drop in the last seven days and a 12.71% decline over the past month, despite a 563.82% increase in the last year. This mixed performance highlights the asset’s susceptibility to macro and liquidity-driven market movements.

Position monitoring reveals that the same address is also active in other short positions, particularly in ETH, where the gains are more pronounced. This multi-asset short approach suggests a strategic, risk-managed approach to bearish market assumptions.

Analysts and Market Participants Watch for Further Moves

While the ZEC short has achieved a rare positive outcome in a typically risky bearish trade, analysts remain cautious about the asset’s volatility. The short-term gains are impressive, but long-term sustainability remains uncertain.

With ZEC trading at $346.59 and having seen a 24-hour gain of 8.55%, the market remains in a state of flux. Short positions that were once unprofitable are now showing strong returns, while others face unrealized losses, particularly in ETH and other major assets.