In the cryptocurrency derivatives market, traders who can continuously and accurately hit the rhythm of a single asset's decline are extremely rare. However, a super whale named Garrett seems to have turned shorting Zcash (ZEC) into his "ATM."
According to on-chain data, this whale, with the address 0x92ea...50e9, recently opened a short position on ZEC worth $4.92 million on the Hyperliquid platform. Prior to this, his two previous ZEC short trades had both been very successful, netting a total profit of up to $11.66 million.
The Whale's Secret Weapon: Long-Short Hedge and Extremely Low Liquidation Risk
Diving deep into AiCoin's on-chain data, we can clearly see Garrett's entire position. Currently, his total value of perpetual contracts is about $80.79 million, employing the classic "long Bitcoin + short altcoins" hedge strategy:
It is noteworthy that he is currently suffering from a floating loss of up to $20 million on long Bitcoin, but he is using only 2x leverage on ZEC shorts. This means his liquidation price for ZEC is well over $4,630, making it an almost absolutely safe position. This operation indicates that his short on ZEC is not mere short-term speculation, but a long-term layout based on very strong fundamental logic.
ZEC Market Trend: High-Altitude Avalanche, Technical Breakdown Across the Board
From AiCoin's 4-hour K-line chart, ZEC's trend can be described as "two extremes."
At the end of May 2026, ZEC once surged to a historic high of $689.57. However, it soon faced a cliff-like drop, hitting a low around $236.74. Currently, the price of ZEC hovers around $385, having fallen nearly 44% from its previous high.
Technical indicators show that ZEC is currently completely under the control of bears. The EMA (10), EMA (40), and EMA (250) lines are all above the price, creating downward pressure and presenting a standard bearish arrangement. Meanwhile, both the DIF and DEA indicators of MACD remain below the zero line, and the MACD histogram continues to be negative, indicating that the downward momentum is far from exhausted.
Unveiling the Short Logic: Fatal Flaws and Institutional Exits
Why is Garrett so firmly committed to shorting ZEC? This is not merely a technical play, but rather a fundamental upheaval in ZEC's underlying circumstances.
First is the fatal flaw in the Orchard privacy pool. At the end of May 2026, security researchers used AI tools (Claude Opus 4.8) to discover a significant underlying logical flaw (soundness flaw) in Zcash's Orchard privacy pool. This flaw theoretically allows attackers to infinitely forge ZEC. Although the flaw was urgently patched by the officials within five days, the critical issue is that due to Zcash's privacy characteristics, the officials cannot cryptographically prove whether the flaw has been exploited by hackers in the past four years and led to the inflation of tokens [2].
Secondly, there is the liquidation-like sell-off by core institutions. This "unable to self-validate" fatal blow directly led to the exit of the largest institutional endorser of ZEC—Arthur Hayes, founder of BitMEX. On June 4, Hayes liquidated all ZEC positions held by his family fund. His reasoning was very straightforward: "Privacy narratives need perfection, not 'probably fine'."
The institutional exits and the collapse of trust are the fundamental reasons behind ZEC's nearly 50% plunge within 48 hours. Garrett clearly sees through this logic: on a privacy coin where even the total supply may be in question, any rebound is an excellent opportunity to short.
Refuse to Grope in the Dark: AiCoin Gives You the Whale's Perspective
Garrett's $4.92 million ZEC short position is not only a precise grasp of fundamentals but also a benefit brought about by the transparency of on-chain data. On decentralized derivative platforms like Hyperliquid, all whale positions, leverage, and even precise liquidation prices are publicly transparent.
If you also want to be like Garrett, keenly capturing trading opportunities in extreme market conditions, or even following whale operations in reverse, you need a powerful mobile tool.
AiCoin's mobile platform has fully integrated with Hyperliquid, perfectly solving the long-standing pain point of HL's official lack of a mobile app.
Through AiCoin, you can:
- Real-time tracking of whale positions: Check the position changes, profit and loss status, and liquidation distance of super whales like Garrett anytime, anywhere.
- Rapid and smooth trading: Say goodbye to lag on the web version, securely authorize in one click, and achieve rapid order placement at market or limit prices within milliseconds of market fluctuations [3].
- Long-short hedge management: Manage your BTC long and altcoin short positions in one interface, monitor margin rates in real time, and adjust risk exposure anytime, anywhere [3].
Instead of blindly taking positions in delayed information, why not open AiCoin and see the market's bottom cards from the shoulders of whales?
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- "AiCoin PC Hyperliquid Authorization Trading Tutorial":
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The content of this article represents the author's personal views and does not represent the stance of this platform. The opinions, conclusions, and recommendations in the text are for investors' reference only and do not constitute any investment advice related to this platform. The market has risks, and investment needs caution.
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