ZEC Surges to $1500, Whales Face Nearly $30 Million in Unrealized Losses, How Far Can the Squeeze Market Go?

Summary

Zcash (ZEC) has recently become one of the strongest assets in the crypto market, with its price rapidly rising from below $1000 in early September and breaking through $1400 on September 17, continuing to challenge the crucial $1500 mark during the session.

At the same time, on-chain data shows that addresses related to Garrett Jin hold about 38,000 ZEC shorts, with a position size exceeding $50 million. As ZEC continues to climb, the unrealized losses on this short position have already expanded to about $26 million to $28 million.

More notably, while ZEC continues to rise, Garrett Jin also transferred approximately 35,001 ETH worth around $85 million from Binance to Hyperliquid.

The current key focus on ZEC has shifted from merely price appreciation to the interplay between spot buying, short covering, and significant derivative positions.
Follow the official account "Bitcoin Lemon" for daily market analysis, news, and practical insights.

ZEC Suddenly Becomes the Market Focus

In this recent market round, ZEC's performance has obviously differed from most mainstream assets.

Starting in early September, ZEC quickly broke through $1000, then succeeded in surpassing $1200 and $1400 one after another.

On September 17, ZEC further broke through $1400, with a 24-hour increase of over 13%, and at one point approached $1500.

This indicates that ZEC has completed a very strong price reevaluation in a short period.

When an asset continuously breaks through multiple whole numbers, the market's focus usually shifts as well.

Previously, the discussion was about

Whether ZEC could break through $1000.

Then it became

Whether ZEC could break through $1200.

Now it is about

Whether $1500 can hold.

This is also the most noteworthy aspect of the current ZEC market.
Follow the official account "Bitcoin Lemon" for daily market analysis, news, and practical insights.

Massive Shorts Have Experienced Over $26 Million in Unrealized Losses

The reason ZEC's recent rise has attracted significant market attention is another very important factor.

That is Garrett Jin's massive short position.

According to data disclosed by Lookonchain, his associated address currently holds about 37,760 ZEC shorts, with a position worth approximately $51.5 million and an average opening price of about $665.85, with a liquidation price around $2631.

As ZEC broke through $1400, the unrealized losses on this short have already exceeded $26 million, and briefly expanded to approximately $28 million.

Interestingly,

This is not a newly established short position.

This position has previously gone through multiple increases and decreases.

In early September, Garrett Jin held about 39,760 ZEC shorts, with unrealized losses exceeding $24 million at that time.

As ZEC continues to rise, he has to face increasingly larger paper losses.

This has also made this position one of the focuses of current market attention regarding on-chain derivative positions.
Follow the official account "Bitcoin Lemon" for daily market analysis, news, and practical insights.

Why Might Massive Shorts Fuel ZEC's Rise Instead?

This involves a very typical market mechanism.

Shorts are not merely "bearish capital."

When shorts incur losses, choosing to close their positions essentially means buying the asset to close the short position.

In other words,

When ZEC rises

↓

Short losses expand

↓

Some shorts will stop out or be forced to cover

↓

Short covering creates new buying

↓

Prices continue to rise

↓

More shorts face pressure

↓

Further buying pressure from liquidations

This is what the market often refers to as the "squeeze" effect.

Of course, this does not mean ZEC will necessarily continue to squeeze.

But in the current environment of rapid increases alongside significant short positions, short covering could indeed amplify short-term volatility.

Previously, during the rise of ZEC, the market has already experienced significant pressure from short liquidations.

Therefore, what truly needs attention now is not just how many people are willing to chase the rise,

but also how many shorts are being forced to exit.
Follow the official account "Bitcoin Lemon" for daily market analysis, news, and practical insights.

$1500 May Become a New Psychological Barrier

From a technical standpoint, $1500 is currently a very obvious psychological level.

As ZEC has already continuously broken through several whole numbers in a short period,

$1000

$1200

$1400

$1500

Each time a whole number is broken through, it will attract new market attention.

If ZEC can effectively break through $1500 and hold above it, the focus area of the market may continue to shift to higher levels.

However, if the price hits $1500 and then quickly falls back, then short-term profit-taking may also concentrate.

So, determining whether ZEC is strong or not shouldn't just depend on whether it reaches $1500 during the session.

What matters more is

Whether it can hold after the breakout.
Follow the official account "Bitcoin Lemon" for daily market analysis, news, and practical insights.

Another Notable Move: $85 Million in ETH Transferred to Hyperliquid

While ZEC shorts are drawing market attention, Lookonchain has also disclosed another new on-chain action.

Garrett Jin has just withdrawn about 35,001 ETH, worth approximately $85 million, from Binance and transferred it to Hyperliquid.

Currently, publicly available on-chain data cannot confirm that these ETH will definitely be used to support ZEC shorts.

Lookonchain has merely suggested this possibility.

Therefore, one cannot directly equate "transferring to Hyperliquid" with "preparing to continue shorting ZEC."

However, this move itself is worth market attention.

Because Hyperliquid is a large derivative trading platform, and Garrett Jin currently holds a substantial short position in ZEC.

If these funds are subsequently used for margin adjustments, position increases, or other trading, it may further impact market judgments about this short position.

Conversely, if ZEC continues to rise and this short position is not significantly reduced, then market concern over the potential squeeze risk may also increase.
Follow the official account "Bitcoin Lemon" for daily market analysis, news, and practical insights.

What Matters Most for ZEC Now Is Not How Much It Has Risen, But Whether It Can Maintain the Breakout

This round of the market has risen very quickly.

Therefore, in terms of future movements, tracking mere price increases is not very significant.

What's more important is to observe a few key levels.

First, $1500

This is the most direct psychological barrier right now.

If it can effectively break through and hold, it indicates that the bulls still control the short-term initiative.

Second, $1400

This is the important price area just completed on the breakout.

If a pullback occurs later, whether $1400 can switch from resistance to support will be an important reference to judge if the breakout is valid.

Third, $1200

If the market experiences a significant correction, whether $1200 can hold will further reflect whether this upward structure is still intact.

Thus, what is truly worth watching moving forward is not

"Whether ZEC can still rise,"

But rather

"After the breakout, whether the market is willing to continue catching offers at higher levels."Follow the official account "Bitcoin Lemon" for daily market analysis, news, and practical insights.

Greater Unrealized Losses for Shorts Do Not Necessarily Mean Imminent Liquidation

It is also important to highlight a misunderstanding here.

Currently, the liquidation price of this short position is about $2631, which does not mean that ZEC is close to liquidation.

According to Lookonchain's latest data, this approximately $51.5 million short position has a liquidation price of about $2631.

So,

$26 million in unrealized losses ≠ already liquidated.

A more accurate understanding is

This position is currently under substantial paper pressure, but it still has a certain margin before reaching the liquidation price.

This also means that what really matters moving forward is whether the position will actively reduce, add margin, or continue increasing shorts.

These actions may be more meaningful to reference than simply looking at the unrealized loss figures.Follow the official account "Bitcoin Lemon" for daily market analysis, news, and practical insights.

Next, Focus on Three Signals

First, watch whether ZEC can hold above $1500.

If it can sustain high levels after breaking through, it shows market support remains strong.

Second, observe whether the massive shorts continue to reduce their positions.

If shorts start to notably cover, this may further increase buying pressure in the short term.

If they continue to increase their positions, it means the bullish-bearish game may escalate further.

Third, monitor whether spot funds continue to flow in.

If the subsequent rise mainly relies on derivative leverage and spot funds do not follow suit, then the risk of volatility at high levels will significantly increase.

Conversely, if both spot demand and derivative funds maintain strength simultaneously, the current upward structure of ZEC may be more solid.Follow the official account "Bitcoin Lemon" for daily market analysis, news, and practical insights.

Conclusion

ZEC's current market trend has become one of the most notable independent movements in the crypto market recently.

From breaking through $1000 in early September, to exceeding $1200, and then nearing $1400, ZEC's rise has notably accelerated.

At the same time, a massive ZEC short position exceeding $50 million has now sustained unrealized losses in the range of $26 million to $28 million, prompting market interest in the potential buying pressure that short covering could bring.

However, it is important to note that unrealized losses for shorts do not equal imminent liquidation, and $1500 does not guarantee continued rising after a breakthrough.

What truly determines whether this market trend can continue is whether prices can hold above key breakout levels and whether spot funds and derivative funds can continue to provide support.

Currently, it appears that

Breakout level at $1500

Support level at $1400

Trend structure at $1200

And whether the massive shorts continue to reduce their positions may become an important variable impacting short-term volatility.

Every day, keep an eye on hot topics in the crypto market, not just to see what news happens, but to understand the logic and opportunities behind the trends. 👀🚀

Follow the official account "Bitcoin Lemon" for daily market analysis, news, and practical insights.

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