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Unusual Zcash trading before flaw discovery sparks suspicion of insider knowledge

Market News
12 Jul 2026
AMBCrypto
View Source
Bearish
pluang ai news

A four-year vulnerability in Zcash's Orchard protocol allowed potential unlimited counterfeit ZEC until a patch was issued in early June. Market data revealed a 12-13 times surge in ZEC trading volume on May 26, days before researchers privately discovered the flaw on May 29. Large profitable short positions opened before the flaw disclosure raised suspicions of informed trading, though no conclusive evidence exists due to Zcash's privacy features. Confidence remains fragile as markets price uncertainty despite the patch.

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