Zcash (ZEC) has gained 120% in the past month to trade near $1,124, putting major short positions under pressure after the token crossed $1,000 last week for the first time in nearly a decade. Three wallets tracked by Hyperliquid data hold combined unrealized losses of roughly $39 million, although one trader has collected $554,850 in funding payments because positive funding rates transfer payments from long positions to shorts. The rally reflects a broader surge in privacy coins, which Glassnode found had risen 213% since Bitcoin’s October 2025 peak, compared with Bitcoin’s 36% decline and a 58% drop for the median top-200 asset. ZEC accounts for 62% of the sector’s market capitalization and is up 2,496% in 12 months. Institutional demand has also emerged, with Grayscale’s first US spot Zcash exchange-traded fund (ETF) on NYSE Arca gathering $463 million since its August 25 listing. However, ZEC futures open interest of $2.56 billion leaves the rally exposed to a reversal if demand for privacy coins fades.