Zcash price surged 30% Tuesday, triggering $46.7 million in short liquidations across exchanges. The event stands as the second-largest in the market, trailing only Bitcoin. Multicoin Capital’s disclosure of a significant ZEC position helped fuel the rally.
The $46.7 Million Wipeout
Short positions imploded within hours as ZEC's price shot up. Traders watched helplessly as liquidations cascaded through multiple platforms. The $46.7 million in losses happened faster than many could react. It was a brutal reminder of leverage risks during sharp moves. Bears got crushed when the coin broke key resistance levels. Exchanges saw unusual volatility as stop-loss orders triggered en masse. The speed caught even seasoned traders off guard. This wasn't a gradual decline—it was a market sprint. Many accounts got wiped clean in minutes.
Multicoin's Big Bet
Multicoin Capital revealed its substantial ZEC holdings late Monday. The firm didn't specify position size but the timing was perfect. Its disclosure came just before the price explosion. That news alone likely drew new capital into ZEC. The firm's track record makes its moves closely watched. This wasn't speculation—it was a coordinated play. When the liquidation wave hit, Multicoin sat on massive unrealized gains. The firm didn't comment on its exit strategy. But the timing suggests it rode the full surge.
Second Only to Bitcoin
Only one crypto liquidation event has been larger than Tuesday's. Bitcoin had a bigger wipeout last year during its volatility spike. That puts ZEC's move in elite company for liquidation events. The scale shows how quickly altcoins can move when catalysts hit. Traders now treat ZEC with more respect for sudden price swings. It's not just Bitcoin that can cause massive liquidations. Established coins like ZEC carry similar risks. The market will remember this when sizing future positions.
Traders are now watching whether the price can sustain today's gains as the dust settles.
