Zcash Short Squeeze Wipes Out $11.26 Million as ZEC Breaks $1,000

In Brief:

• Zcash crossed $1,000 for the first time since 2018, triggering $13.24 million in liquidations and overwhelming traders holding leveraged short positions.
• ZEC gained 105% monthly and 2,395% yearly as its market capitalization climbed to approximately $17.25 billion during the sustained rally.
• Grayscale’s ZCSH fund surpassed $400 million in assets, while Zakura’s tools reduced private mobile transaction construction times below 200 milliseconds.

Zcash (ZEC) crossed $1,000 for the first time since 2018, forcing bearish traders from millions of dollars in leveraged positions. The privacy token reached $1,051 on September 4, rising from $805. ZEC struggled to move beyond $888, encouraging traders to expect another rejection.

However, stronger buying pressure pushed the token beyond that resistance and triggered short liquidations. CoinGlass data shows that liquidated ZEC positions reached $13.24 million within 24 hours.

Short positions accounted for $11.26 million, while long liquidations totaled $1.98 million. Consequently, the difference produced a reported 562% imbalance between bearish and bullish liquidations.

Forced closures require exchanges to purchase tokens for affected short traders, adding momentum to an existing rally. This mechanism supported ZEC as the price moved through $1,000 and caught bearish traders unprepared.

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Institutional and Technical Developments Support ZEC Demand

Zcash gained 105% over the past month and 2,395% over the past year, based on CoinGecko data. Its recovery began in October 2025 when ZEC escaped a trading range established during June 2022.

The token had fallen to $7.70 in April 2025 before demand strengthened during the following months. Besides improving market conditions, institutional products and network developments have supported interest in the privacy-focused cryptocurrency.

Grayscale’s spot Zcash exchange-traded fund started trading on NYSE Arca under the ZCSH ticker in late August. The product has accumulated more than $400 million in assets under management, establishing a record for the fund. Additionally, Digital Currency Group entered nonbinding discussions involving a potential purchase of 200,000 ZEC through a subsidiary.

Meanwhile, Zakura developers released cryptographic tools that reduced the time required to construct private mobile transactions. Processing time fell from three seconds to below 200 milliseconds, supporting Zcash’s potential use for everyday payments.

ZEC’s rally lifted its market capitalization to approximately $17.25 billion, placing it among the ten largest cryptocurrencies. Nevertheless, the liquidation imbalance shows how concentrated leverage can intensify price movements when market expectations change.

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