A large trader on the Hyperliquid platform is currently facing an estimated $25.7 million in unrealized losses following a significant price increase in Zcash (ZEC). The figures were highlighted in a September 7 assessment by on-chain analyst Ember.
The targeted wallet opened a short position of 32,760 ZEC in early July at an average entry price near $444. Since then, ZEC prices have surged from around $400 to over $1,200, representing an increase of roughly 170% over a two-month period. At a trading price near $1,228 during the snapshot, the gap between the entry and market price generated the multi-million-dollar paper loss.
While on-chain analyst Ember attributed the address to a “Garrett Jin whale entity,” this connection has not been independently confirmed by a signed message, public statement, or filing.
The same wallet also maintains a Bitcoin long position valued at approximately $107 million, which currently shows an unrealized gain of $4.42 million. However, the wallet has incurred around $2.05 million in funding fees on the Bitcoin trade, reducing the effective return. Combined, the Bitcoin gains do not offset the losses from the ZEC short position, leaving the combined snapshot deeply negative.
Drivers Behind the Zcash Rally
The upward price movement for Zcash followed increased institutional interest in the asset. Grayscale converted its Zcash Trust into the ZCSH exchange-traded fund, which commenced trading on NYSE Arca on August 25 with a 2.5% annual sponsor fee. Shortly after the launch, ZEC traded near $855 with 24-hour exchange volume exceeding $1.2 billion, before pushing past $1,000 and putting further pressure on remaining short positions.
Market observers note that spot buying, derivatives positioning, and short covering may have all contributed to the rally, though no single factor has been confirmed as the sole cause.
The wallet's short position remains open, with its exact liquidation price unavailable from the analyst's report and no liquidation recorded at the time of publication. Market participants continue to monitor the wallet's collateral levels, ZCSH fund flows, and ZEC derivatives open interest.
