ZEC contract open interest on Hyperliquid plunges 51.6% from its peak, with $145 million positions closed early
BlockBeats news, on June 5, it was reported that Zcash theoretically faces an unlimited issuance risk due to the Orchard zero-knowledge proof vulnerability. Negative public discourse has continued to intensify because of its "black box" nature, culminating in today's concentrated outbreak.
Amid panic selling, the ZEC contract holdings on platforms have dropped significantly by 51.6% compared to the June 3rd peak (about $371.8 million), and during this period, a substantial amount of funds—$145 million—were withdrawn at an early stage.
The changes in holdings (data based on UTC, converted to the East 8th District time zone) are as follows:
- May 29 to May 30, 8:00 (UTC+8): ZEC contract holdings were around $223 million;
- May 30 to June 3, 8:00 (UTC+8): Holdings rose to a peak of $371 million, during which the price increased from around $530 to $630, with both volume and price rising;
- June 3 to June 4, 8:00 (UTC+8): The price stabilized at a high level, and holdings fell to $226 million;
- June 4 to present: Negative public opinion intensified, and holdings further dropped to $180 million.
During the early morning of June 3 to 4, when the vulnerability details had not yet been widely disclosed and the price was still stable, nearly $145 million worth of positions exited early. Large funds responded to the vulnerability, possibly before the public became aware of its severity.
The following supplementary content corresponds to the event timeline (East 8th District):
- Late night May 29 to early morning May 30: Security researcher Taylor Hornby discovered and privately reported the Orchard circuit vulnerability to the Zcash core team. Upon confirmation, the team began drafting a fix;
- Evening of May 31: The team started confidential coordination with miners and exchanges;
- 10:00 AM, June 2 (UTC+8): Emergency soft fork activated, suspending Orchard transactions to mitigate risk;
- 12:05 PM, June 3 (UTC+8): NU6.2 hard fork activated, the vulnerability was fixed and Orchard transactions resumed, alongside the release of an emergency upgrade notice (without detailed disclosure of the severity);
- Night of June 4 to June 5: According to information revealed by the community and official sources, the severity of the vulnerability was gradually reported. The main concern is the possibility of unlimited generation of undetectable fake ZEC, with the vulnerability having existed for four years and, due to the nature of the privacy pool, it is impossible to confirm 100% whether it has been exploited. Currently, the vulnerability remains in a "black box" state, and if it has been exploited, the supply is questionable.
Note: Chart is in UTC time
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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