By Allium Research
A Four-Year Bug, a 64% Crash, and a Question Nobody Can Close
Inside the Zcash privacy-layer bug and the 64% ZEC selloff (June 2026)
Zcash patched a bug in its privacy layer that could have let someone mint unlimited ZEC, undetected for four years. Because every transaction is hidden, nobody can prove the bug was never used. ZEC fell 64%, and Allium's Hyperliquid data shows the selling started three days before the bug was even privately discovered.
What this report shows:
- The selling began before the announcement, when trading volume spiked to 12-13x normal on May 26
- The heaviest selling came after the June 3 patch, not before it, $560M in a single hour as the price hit $247
- Why a clean fix could not settle it, and what the market is actually pricing
Informational only. Not investment advice.
By Olivia Denk, Research @Allium
Other reports
Tokenized US Funds Onchain: $14.2B and Compounding
June 2026
Tokenized US money-market and Treasury funds now hold $14.2B in onchain AUM, up roughly 8x in 24 months from $1.7B. Two products split the market: Treasury and government-bond wrappers ($10.7B, 75%) and registered money-market funds ($3.5B, 25%), both backed by short-dated US government paper that passes a Treasury-bill yield through to the holder.
Tokenized Equities Onchain: $3.3B and Growing
May 2026
Tokenized equities now represent $3.3B in onchain exposure across two parallel markets: $1.67B in spot equity wrappers (up 13.6x year-over-year) and $1.67B in Hyperliquid HIP-3 perpetual open interest (up 3.3x in 90 days).
Hyperliquid non-crypto perps
May 2026
Tokenized stocks, indices, commodities, pre-IPO & FX traded as perps on HL via HIP-3 builder books.