ZEC Short Giant Adds $4M in Two Minutes Amid Deepening Bearishness

On February 4, 2026, Zcash (ZEC) saw a marginal increase of 0.27% in the past 24 hours, reaching $253.64. However, the token continued to face a steep bearish trend over the medium to long term, with a 25.86% drop over seven days, a 16.68% drop over a month, and a 50.71% decline year-over-year.

A major development in the ZEC short market has drawn attention. According to HyperInsight monitoring, the largest ZEC short address (0xd475...) executed two rapid additions to its short position within a span of two minutes, adding a total of 119,470.37 HYPE—valued at approximately $4.1354 million. The first addition occurred at 11:21 AM with 58,431.91 HYPE (≈$2.011 million), followed by a second addition at 11:23 AM totaling 61,038.46 HYPE (≈$2.1245 million). These transactions pushed the total value of the position to $11.4743 million.

Despite the size of the position, the address currently holds an unrealized loss of roughly $1.4174 million, with a loss percentage of about 61.47%. The average entry price is $29.08, and the liquidation price is $98.65. This address is well known for its aggressive shorting strategy, having initiated its ZEC short position when the price was $184, at one point facing an unrealized loss of $21 million before turning the position profitable.

The rapid accumulation of this short position highlights the growing bearish sentiment in the ZEC market, particularly among large institutional players. The high volume of these trades and the timing suggest that the short seller is capitalizing on a continued downtrend, likely anticipating further price pressure. The short position’s scale also underscores the level of strategic positioning among major market participants, who are closely monitoring key support and resistance levels.

This development comes amid broader technical indicators that reflect increasing selling pressure in the ZEC market. ZEC’s price remains below its EMA20, and trading volume has surged to $712.35 million in the past 24 hours, significantly above the weekly average. Such high volume during a downtrend typically indicates aggressive shorting and panic selling, especially as retail investors react to the bearish environment.

The short position’s continued expansion adds to the already bearish narrative, particularly in a market where accumulation signals remain weak and distribution risks are high. Analysts note that the position’s proximity to the $266 support level could become a focal point for near-term price action, with a potential test of this level likely to influence short-term market sentiment. If the price fails to hold above this level, it could trigger further selling and extend the downward trajectory.

As the ZEC bear market continues to evolve, the actions of key market participants will remain a crucial factor in shaping the token’s near-term trajectory.