ZEC Contract Holdings on Hyperliquid Plummet 51.6% from Peak, $145 million Position Preemptively Liquidated

**June 5 Flash Update: Zcash Faces Theoretical Infinite Inflation Risk Over Orchard zk-SNARK Vulnerability** Per Hyperinsight Monitoring (@HyperInsight on Telegram), Zcash is at theoretical risk of infinite inflation due to a flaw in its Orchard zk-SNARK protocol. Negative sentiment around the vulnerability—fueled by its "black box" ambiguity—has finally erupted into public focus after lingering unaddressed. Alongside widespread panic selling, ZEC contract positions on the Hyperliquid platform have plummeted 51.6% from their June 3 peak of ~$371.8 million. Early withdrawals totaled $145 million during the period. Below are position shifts (adjusted from UTC to Beijing Time): - May 29–30 (8:00 AM Beijing): ZEC contract positions stood at ~$223 million. - May 30–June 3 (8:00 AM Beijing): Positions rose to a peak of $371 million, with ZEC prices climbing from ~$530 to $630—marking a simultaneous spike in both price and volume. - June 3–4 (8:00 AM Beijing): Prices stabilized at a high, and positions dropped to $226 million. - June 4 to Present: Public exposure of the vulnerability pushed positions further down to $180 million. Notably, nearly $145 million in positions exited between the early morning of June 3–4 (before vulnerability details were widely publicized, when prices still held steady), indicating large funds detected risk earlier than the general public. **Event Timeline (Beijing Time):** - Late May 29–Early May 30: Security researcher Taylor Hornby discovered an Orchard circuit bug and privately notified the Zcash core team, which confirmed the issue and began developing a fix. - Evening of May 31: The core team coordinated privately with miners and exchanges. - June 2 (10:00 AM): An emergency soft fork activated, pausing Orchard transactions to mitigate risk. - June 3 (12:05 PM): The NU6.2 hard fork launched, patching the bug, re-enabling Orchard transactions, and releasing upgrade guidelines without disclosing the vulnerability’s full severity. - June 4 Evening–June 5: Community and official disclosures revealed the flaw’s seriousness: it allows potential creation of undetectable fake ZEC indefinitely, has existed for 4 years, and the privacy pool’s design makes full exploitation confirmation impossible. The vulnerability remains a "black box"—exact supply changes if exploited are unproven. *Note: Position charts use UTC time.* **HyperInsight Bot Alert:** The HyperInsight Bot is now live. Add @HyperInsightBot to your Telegram community, grant it admin permissions (with message-sending enabled), to auto-sync on-chain data.