In recent days, Humanity, ZEC, and Anthropic's Mythos have been viewed together, and encryption security may no longer be a single project issue. On June 9th, Humanity Protocol confirmed that members' devices were hacked, their private keys were compromised, at least 17 wallets were emptied, and the cumulative losses exceeded $32 million. The attacker exchanged H for ETH and continued to issue tokens using their privileges, expanding from a single 100 million tokens to a cumulative total of over 300 million tokens, rapidly depleting liquidity. Currently, 10 million H coins in the pool can only be exchanged for about 6 BNBs, which is less than $4000. The price also fell from around $0.7 to the range of $0.0003, almost losing pricing power. Without multiple signatures, no permission isolation, and no circuit breaker mechanism, a 1.1 billion valuation project can be directly penetrated by a private key. Zcash's Orchard Pool has an unlimited issuance vulnerability since 2022, which was discovered on May 29th and fixed on June 1st. It has been dormant for four years without anyone noticing. ZEC fell more than 40% in a single day, and Arthur Hayes directly cleared all ZEC positions on June 5th. A well-established privacy chain ultimately makes the market doubt not privacy, but the supply itself can no longer be trusted. At the same time, Anthropic launched Project Glasswing in April, with the first batch of about 50 institutions accessing Claude Mythos Preview. Within a few weeks, over 10000 high-risk and severity level vulnerabilities were discovered. On June 2nd, it was directly expanded to over 150 suppliers, covering key infrastructure such as electricity, water, healthcare, communication, and hardware. It is expected that within the next 6 to 12 months, multiple AI companies will have Mythos level network security capabilities, and the cost of discovering vulnerabilities is rapidly decreasing. The problems that used to take security teams years to find may only require stronger models and more computing power in the future. The offensive and defensive capabilities have widened the gap, but the encryption industry is still spinning in place. The current fact on the chain is that DeFi's real APY has generally fallen to 4% -8%, and many mainstream pools have already fallen below 5%. But even with a private key leak or protocol vulnerability, the principal can still be reduced to 100% zero. The most obvious signal is that funds are accelerating from on chain to exchanges, custodians, and even off chain TradFi/RWA, and liquidity is re pricing safety. The funds have not left the cryptocurrency market, but are only exiting the portion that cannot withstand a single point of risk.