Zcash Surges Past $1,500 as Leverage Fuels Short Squeeze

Zcash (ZEC) initially broke above $1,000 before surging past $1,500 during Asian trading on 18 September. ZEC gained about 8% in 24 hours and more than 35% over seven days, lifting its market capitalisation to roughly $24.8 billion and placing it ninth among cryptocurrencies. The rally has caused heavy losses for short sellers. Earlier data showed about $24.2 million in ZEC liquidations over 24 hours, including $22.6 million in shorts. The figure later rose to roughly $56 million during a broader $345 million crypto liquidation event, with short positions accounting for most ZEC liquidations. A large ZEC short position reportedly linked to trader Garrett Jin on Hyperliquid had nearly $30 million in unrealised losses. Its average entry price was about $665.85, with an estimated liquidation price near $2,631. The related address also transferred 35,001 ETH, worth about $85 million, from Binance to Hyperliquid, although on-chain data does not confirm that the funds were used as margin. ZEC derivatives activity has expanded sharply. Futures volume reached about $12.67 billion in 24 hours, compared with roughly $1.42 billion in spot volume. Open interest rose from about $2.32 billion to $3.48 billion, highlighting rising leverage and the risk of a rapid reversal. The Zcash rally is being supported by short covering, renewed interest in privacy coins, Paradigm’s disclosure that it holds ZEC, and expectations for the NU7 upgrade, which could reduce block times to about 25 seconds. Grayscale’s Zcash ETF, ZCSH, also provides an institutional demand channel. It reported $463.2 million in assets and about 444,608 ZEC as of 4 September, while estimated net inflows since launch reached at least $34.4 million. Zcash remains bullish while it holds the $1,400-$1,500 area, but extreme leverage leaves the market vulnerable to a long squeeze. Traders should monitor support levels, open interest, liquidation data and whether the major short position begins to close.