ZEC Plummets Due to Orchard Vulnerability Concerns, Hyperliquid Notable Market Maker Auros Global Faces $8.5 Million Unrealized Loss on Large Long Position
ZEC prices experienced a panic-driven decline in the afternoon, primarily influenced by the ongoing concerns regarding the feasibility of the "infinite minting of ZEC" vulnerability in the Orchard pool, leading to serious doubts about the integrity of privacy pools.
During the price drop, Hyperliquid's notable market maker Auros Global was forced to take on large long positions, currently holding $10.5 million in ZEC longs, with unrealized losses peaking at $8.5 million (-450%). The total holdings of this market-making address amount to $46.2 million, previously providing liquidity for 99 cryptocurrencies.
Auros Global has recently significantly reduced the range of cryptocurrencies it makes markets for, resulting in a decrease in total holdings. This incident further exacerbates selling pressure in the ZEC market, highlighting the vulnerability of highly leveraged market makers during extreme volatility.
Source: Public Information
ABAB AI Insight
Auros Global Address: 0x023a3d058020fb76cca98f01b3c48c8938a22355
As of my inquiry (around 2026-06-05 08:15 UTC):
General EVM Multi-chain Wallet Assets: Approximately $27,569
Arbitrum: Approximately $17,936, mainly 6.9014 ETH
Monad: Approximately $7,475, about 204,917 MON
HyperEVM: Approximately $2,156, about 48.068 HYPE
Hyperliquid Perpetual Account: Approximately $12.88M account value
Withdrawable: Approximately $6.93M
Total Nominal Position: Approximately $46.28M
Current Unrealized PnL: Approximately -$7.00M
Number of Open Positions: 99
Hyperliquid spot also shows significant balances, such as approximately 1.93M USDC, 1.56M USDH, 5,834.83 HYPE, 3.057 UBTC, etc.; these spot small coins/mapped coins valuations need to be verified separately and cannot be directly aggregated by regular wallet aggregators.
Major perpetual positions include: ZEC long approximately $10.58M, BTC long approximately $4.34M, HYPE short approximately $3.81M, XRP long approximately $3.75M, SOL long approximately $3.34M, ETH long approximately $2.54M.
Recent trading has been very active. Hyperliquid's recent return of 2,000 transactions only covers about 72 minutes (2026-06-05 07:03-08:15 UTC), during which realized PnL was approximately -$358k, mainly due to losses from ZEC long position liquidation (approximately -$343k), offset by about +$14.8k from NEAR short position liquidation. Recent trades include: closing PUMP short for a small profit, continuously closing ZEC long positions at a loss, opening ETH long positions, closing FIL/NEAR short positions, etc.
As a core market maker for Hyperliquid, Auros Global previously provided deep liquidity in multiple crypto derivatives markets. This incident during the ZEC crash forced them to take on liquidity, continuing the common dilemma faced by market makers in black swan events, similar to past chain liquidations triggered by privacy coins or vulnerability incidents.
On the capital path, concerns over the ZEC vulnerability have led liquidity providers to quickly reduce their exposure, accelerating the withdrawal of funds from high-risk privacy coins and leveraged market positions, shifting towards prediction markets with real trading volumes and transparent mechanisms like Polymarket and Kalshi, as well as mainstream compliant assets. Market makers are controlling risks by reducing position sizes and concentration of coins.
This event is reminiscent of the massive unrealized losses faced by market makers during the 2022 Terra collapse, as well as the liquidity evaporation following the disclosure of vulnerabilities in several recent projects. The crypto market is currently in a transitional phase characterized by frequent vulnerability events and highly concentrated liquidity.
Essentially, this represents capital concentration: the trust crisis in privacy protocols accelerates the shift of funds from high-risk leveraged market making and single projects towards leading compliant models and real adoption tracks, as the passive pressure on market makers highlights the vulnerability of assets lacking verifiable mechanisms during extreme events, with pricing power concentrating towards protocols with transparent audits and exit liquidity.
ABAB News · Cognitive Law
The feasibility of vulnerabilities fermenting is more deadly than actual exploitation; market fear always runs ahead of facts.
The massive unrealized losses of market makers often amplify retail panic; when liquidity dries up, the buyer becomes the last one holding the bag.
The stronger the privacy, the higher the trust cost; assets without verifiable supply can never withstand an AI audit.