Zcash ($ZEC) rebounded sharply after a critical vulnerability in its blockchain code was disclosed, propelling the token from a low near $250 back toward $530.
Vulnerability Disclosure and Immediate Price Drop
Founder Zooko Wilcox revealed a flaw that could have let attackers create unlimited $ZEC tokens, sparking alarm among crypto investors. The announcement eroded confidence in the blockchain’s monetary supply and drove Zcash’s price to approximately $250 on June 5, marking one of the steepest declines in recent months.
Market Rebound and Trading Volume Surge
Support at the $250 threshold attracted buyers, halting the downward spiral and prompting a swift recovery. Within days, $ZEC rallied to around $530, effectively doubling its post‑crash value, while 24‑hour trading volume surged to roughly $1 billion—about 10 % of Zcash’s circulating market cap.
Short Squeeze Amplifies Rally
Data from CoinGlass indicates that short positions worth about $21 million were liquidated over the past two days, intensifying the upward momentum. The forced closure of bearish bets contributed to the rally, reinforcing investor optimism in the crypto asset.