Zcash Shorts Suffer as ZEC Rallies to $1,124 Amid Privacy Sector Surge

Zcash's (ZEC) recent triple-digit rally has put significant pressure on short sellers, who are now watching their positions sink deeper into the red. The cryptocurrency has gained 120% in the past month alone and is trading near $1,124.

This sharp increase has proved costly for traders positioned against ZEC. According to Hyperliquid data, trader Garrett Jin is down $21.94 million on his short position of 39,760 ZEC, which was entered at an average price of $576.30. He had initially made a profit of $2.7 million by closing his entire 1,332 BTC long position.

Jin is not alone in his losses, as two other wallets are also down on their short positions. One wallet is sitting on a paper loss of $13.33 million, while the third has lost $4.12 million. Together, the three wallets have incurred roughly $39 million in unrealized losses.

The rally in ZEC has been driven by the broader growth of the privacy sector, which has surged 213% over the past year. Zcash is responsible for much of this expansion, accounting for 62% of the sector's market cap and increasing by 2,496% in 12 months.