Arthur Hayes Dumps Entire Zcash Position After Orchard Pool Vulnerability Disclosure, ZEC Down 40%

According to Arthur Hayes, chief investment officer of Maelstrom, he sold his entire Zcash position on June 4 after developers disclosed a critical vulnerability in the network's Orchard Pool that could have allowed unlimited counterfeit ZEC to be minted. The flaw, which existed since Orchard's activation on May 31, 2022, was discovered on May 29 and patched by June 1 through a soft fork. Hayes said the bug violated his confidence in the token's supply integrity because the network's privacy architecture makes it impossible to cryptographically prove whether the exploit was used before remediation.

ZEC fell more than 40% following the disclosure and extended its decline to roughly 50% from earlier levels, trading near $250–$310 after reaching approximately $630. The selloff triggered $116 million in liquidations across nearly 19,160 traders, with almost $72 million from long positions and over $45 million from short positions, according to CoinGlass data.