Hyperliquid ZEC open interest drops 51.6% as Zcash “counterfeiting” flaw resurfaces

The post says a four-year-old vulnerability could theoretically allow undetectable unlimited fake ZEC creation, raising fresh concerns around privacy-shielded supply risk.

Summary

Open interest in ZEC contracts on Hyperliquid fell 51.6% from its peak as concerns spread over a long-dormant Zcash vulnerability described in the post as a “black box” flaw. The issue was said to have existed for four years and, in theory, could let an attacker create unlimited counterfeit ZEC that would be impossible to detect with certainty because the activity would sit inside a privacy pool. The post framed the market move as a sign that “smart money” exited quickly as the risk narrative intensified.

Terms & Concepts
  • open interest: Total number of outstanding derivatives positions
  • ZEC contracts: Derivatives tied to the Zcash token
  • privacy pool: Shielded transaction pool that obscures activity