Zcash Leads Crypto Liquidation Wave with $45M in Short Squeeze

Zcash led a crypto liquidation wave on September 6, with its price surging 15% to $1,170. The surge was accompanied by $212 million in market-wide liquidations, with short positions accounting for about $156 million of the total.

Short Squeeze Drives the Liquidation Imbalance

The data shows how heavily bearish positioning contributed to the move. As prices rose, leveraged short positions lost margin support and exchanges forcibly closed them. This added further buying pressure, as forced short closures require positions to be bought back.

Grayscale’s Zcash ETF, or ZCSH, debuted on August 25 and attracted at least $34.4 million in net inflows. The fund gives brokerage investors exposure without requiring direct cryptocurrency custody.