Edgen Crypto·Nov 17 2025, 05:10
[1] SlowMist Yu Xian: NOFX AI Trading System Exposes Security Vulnerabilities, May Lead to Private Key Leaks - Shenchao TechFlow (https://www.techflowpost.com/newsletter/detai ...)[2] Security Overview · NoFxAiOS/nofx - GitHub (https://vertexaisearch.cloud.google.com/groun ...)[3] Front-end and private key exploits drove over $2 billion in crypto thefts during H1 2025: report | The Block (https://vertexaisearch.cloud.google.com/groun ...)
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Nov 17 2025, 01:20
Hyperliquid ZEC’s Largest Short Position Faces Over $22 Million in Unrealized Losses Amidst Price Surge
## Executive Summary The largest short position on Hyperliquid ZEC perpetual contracts has recorded over $22 million in unrealized losses, with a liquidation price set at $1112.45, indicating significant market pressure on **Zcash** (**ZEC**). ## The Event in Detail As of recent monitoring, a prominent short position on **ZEC** perpetual contracts on the **Hyperliquid** platform is facing an unrealized loss exceeding $22.04 million. This position holds a liquidation price point of $1112.45. On November 15th, 2025, **HyperInsight** monitoring indicated that a large **ZEC** short position, initiated at an entry price of $360.077 per coin with 5x leverage, had already reduced its size by $1.01 million and recorded an unrealized loss of $18.45 million, with its liquidation price at $973.4. Separately, as of November 16th, 2025, another significant short position, identified by address **0x7b7...2734e**, opened a 10x leveraged short for 31,015.92 **ZEC** tokens (approximately $21.43 million in value), showing a floating loss of $1.177 million, positioning it as the second-largest short on **Hyperliquid**. In contrast, the market also shows robust long interest. A top **ZEC** long position on **Hyperliquid** recently increased its holdings by 20,000 **ZEC** tokens, reaching a total of 60,000 **ZEC**. This position, valued at approximately $39.468 million, is currently showing a profit exceeding $6.2 million. Additionally, on November 8th, 2025, a newly established wallet deposited $6.27 million in **USDC** to **Hyperliquid** to open a long position on **ZEC** at $504. ## Financial Mechanics The substantial unrealized losses for short positions are directly linked to the recent price appreciation of **ZEC**. The **Zcash** price currently stands at $684.78. This represents a 30% increase from the previous week’s price of $527.16 and a 20% surge from the prior day’s price of $572.99. In high-leverage crypto trading, a liquidation price is the point at which a trader’s position is automatically closed by the exchange due to insufficient margin to cover losses. For positions with high leverage, such as the 5x and 10x leverage observed, even small price movements can significantly impact margin requirements, making liquidation a critical risk. The open interest for **ZEC** perpetual contracts on **Hyperliquid** was approximately $115 million as of October 30th, indicating substantial market activity. ## Market Implications The accumulation of significant unrealized losses in **ZEC** short positions, coupled with strong long interest, sets the stage for potential market volatility, including a **short squeeze**. If the price of **ZEC** continues its upward trend, these short positions could be forcibly closed, further fueling price increases. The listing of **ZEC** perpetual contracts on **Hyperliquid** has enhanced market liquidity for the asset, attracting both long and short traders. **Zcash** currently has a market capitalization of $11.06 billion, with a circulating supply of 16,312,576 **ZEC**, approximately 78% of its maximum supply. The fully diluted valuation for **Zcash** amounts to $14.24 billion. Market activity shows a 57% change in buyers and a 106% change in sellers, with a total of 15,234 trades, reflecting dynamic trading conditions. This scenario highlights the ongoing tension between bearish and bullish sentiment in the **Zcash** market. ## Broader Context The current situation illustrates the magnified risks inherent in leveraged derivatives trading within volatile cryptocurrency markets. Large unrealized losses in short positions can quickly lead to cascading liquidations, creating feedback loops that accelerate price movements. Traders are advised to meticulously calculate liquidation prices and manage leverage to mitigate risks. The increased open interest and liquidity on platforms like **Hyperliquid**, which has a total open interest of $7.71 billion, demonstrate the growing sophistication and activity in the decentralized finance (DeFi) derivatives landscape, where significant capital is deployed in high-stakes positions.
Nov 17 2025, 00:45
Cardano Holder Incurs $6.05 Million Loss in ADA-to-USDA Swap Due to Low Liquidity
## Executive Summary A Cardano wallet holder, active after five years, executed a swap of 14.4 million **ADA** tokens for 847,000 **USDA**, incurring a $6.05 million loss due to low liquidity in the trading pool. ## The Event in Detail An on-chain transaction reported by investigator **ZachXBT** revealed that a Cardano wallet, dormant for approximately five years, exchanged 14.4 million **ADA** tokens, valued at approximately $6.9 million, for 847,000 **USDA** stablecoins. The immediate consequence of this swap was a realized loss of $6.05 million for the wallet holder. This incident highlights specific challenges within decentralized finance (DeFi) ecosystems, particularly concerning market depth for certain assets. ## Market Implications The substantial loss is directly attributable to the low liquidity present in the trading pool at the time of the transaction. Low liquidity in a trading pair can cause significant price slippage, especially with large orders, leading to temporary price spikes that are unfavorable to the transacting party. **USDA** is a stablecoin native to the Cardano blockchain, developed by **Anzens** for global payments and cross-border transactions within the Cardano ecosystem. While designed for stability, the trading pair’s liquidity proved insufficient to absorb a large sell order of **ADA** without severe price impact. This event underscores the inherent risks associated with providing and utilizing liquidity in DeFi, including impermanent loss and the potential for drastic price movements when market depth is shallow. At the time of the incident, **ADA** was trading at $0.48, reflecting a 5.5% decrease in the prior 24 hours, according to CoinGecko data. ## Expert Commentary Industry analysis frequently points to liquidity risk as a critical factor in decentralized exchange operations. When a trading pool lacks sufficient assets to match a large transaction, the execution price can diverge significantly from the expected market rate, resulting in substantial losses. This phenomenon is distinct from impermanent loss, which arises from price divergence between pooled assets, but both highlight the complexities for liquidity providers and large traders in DeFi. The incident serves as a cautionary tale regarding the necessity of assessing available liquidity before executing significant token swaps, particularly with assets on newer or smaller protocols. ## Broader Context The decentralized finance market continues to expand, projected to reach $78.49 billion by 2030 from $51.22 billion in 2025, with an 8.96% Compound Annual Growth Rate (CAGR). This growth is driven by regulatory clarity, such as the EU’s Markets in Crypto-Assets framework, and the increasing institutional adoption of tokenized real-world assets. Despite this expansion, incidents like the **ADA**/**USDA** swap emphasize that liquidity remains a critical vulnerability, especially for less established stablecoins or smaller trading pools. While institutional interest in tokenized assets is growing, converting sidelined liquidity into on-chain positions, individual large transactions can still face significant friction and financial risk in markets with insufficient depth. This event may lead to increased scrutiny of liquidity provisions in emerging DeFi markets and promote more cautious trading strategies among large digital asset holders.
Nov 17 2025, 00:43
Major Cryptocurrency Token Unlocks Exceed $73 Million This Week, Driving Market Volatility Concerns
## Executive Summary Multiple cryptocurrencies, including **LayerZero (ZRO)**, **ZKsync (ZK)**, **KAITO**, **ApeCoin (APE)**, and **YZY**, are poised for unlocks totaling over $73 million this week, prompting market participants to assess potential price fluctuations and increased selling pressure. ## The Event in Detail Significant token releases are scheduled across several prominent crypto assets. **LayerZero (ZRO)** is set to unlock approximately 25.71 million tokens on November 20, representing 7.29% of its circulating supply, with a market value of $38.3 million. On November 17, **ZKsync (ZK)** will release 173 million tokens, accounting for 3.37% of its current supply, valued at $9 million. **KAITO** is scheduled to unlock 8.35 million tokens (2.97% of circulating supply), worth $6.4 million, on November 20. Additionally, **ApeCoin (APE)** will see an unlock of 15.60 million tokens (1.66%) on November 17, valued at $5.5 million. **YZY** will unlock 37.50 million tokens (12.50% of current supply) on November 19, carrying a valuation of $14.1 million. The combined value of these scheduled unlocks surpasses $73 million, injecting a substantial volume of new tokens into the market. ## Market Implications These impending token unlocks are anticipated to exert downward pressure on the market prices of the affected assets. Historical analysis indicates that approximately 90% of all token unlock events result in negative price pressure, irrespective of the scale or type of unlock. Larger unlock events have been observed to correlate with an average price drop of 2.4 times and heightened market volatility. The market impact of an unlock often begins approximately 30 days prior to the event itself, suggesting that current market movements may already reflect these upcoming supply increases. This influx of new tokens could dilute market value if demand does not sufficiently absorb the increased supply, potentially leading to price depreciation as new holders may elect to sell for profit. ## Broader Context The broader cryptocurrency market typically reacts to token unlocks with increased caution. The nature of the unlock can also influence its impact; for instance, unlocks designated for team allocations have historically triggered more severe price crashes, averaging a 25% decline, alongside what is often characterized as irrational sell-offs. Conversely, unlocks allocated for ecosystem development can, in some instances, have a marginally positive impact, averaging a 1.18% increase. In response to potential price corrections, investors often employ strategies such as avoiding panic decisions and maintaining a diversified portfolio to insulate against dramatic price swings. For long-term investors, periods of price decline resulting from increased supply may be viewed as opportunities for accumulation, provided the fundamental value proposition of the underlying asset remains robust.