ZEC Rally Drives $25.7M Hyperliquid Whale Loss
ZEC surged from about $400 to above $1,200, leaving a major Hyperliquid short position with an estimated $25.7 million in unrealised losses. Blockchain analyst Ember linked the wallet to the alleged Garrett Jin whale entity, although public data cannot independently confirm its owner. The trader shorted 32,760 ZEC at an average price of about $444 in early July, and the position remains open.
The wallet also held an estimated $107 million Bitcoin long, with about $4.42 million in unrealised gains. However, roughly $2.05 million in Bitcoin funding fees reduced the hedge’s effective return and did not offset the ZEC loss.
The ZEC rally has been supported by renewed privacy-coin demand, spot buying, derivatives activity and short liquidations. Grayscale’s conversion of its Zcash Trust into the ZCSH exchange-traded fund, which began trading on NYSE Arca on 25 August, may also have increased institutional interest. Reports of possible positioning by major Bitcoin mining pools and interest from digital-asset firms added to the speculation. ZEC briefly surpassed Dogecoin in market capitalisation.
Traders should monitor whether ZEC can hold above $1,200, alongside open interest, funding rates, spot volume, collateral and liquidation levels. Further short covering could extend the rally, while a reversal could trigger rapid deleveraging and narrow the whale’s unrealised loss.
Bullish
The direct price impact on ZEC is bullish in the short term. A large open short with substantial unrealised losses creates the risk of forced liquidation and short covering, which could add buying pressure if ZEC remains above $1,200. ETF-related attention, privacy-coin demand and strong derivatives activity also support momentum.
The outlook is not risk-free. Elevated funding rates, open interest and leveraged positioning can make ZEC vulnerable to a sharp reversal. A break below key support could trigger long liquidations and rapid deleveraging, reducing the whale’s losses while putting pressure on ZEC. Over the longer term, sustained ETF inflows, spot demand and reduced available supply would be needed to support the rally beyond a short squeeze.