Crypto Market Plunge as Zcash Vulnerability Triggers $1.2B Liquidations and Altcoin Cap Falls Below $880B

A critical security flaw discovered in Zcash’s Orchard shielded pool caused the privacy coin to crash more than 40% to around $265, stripping it of its top‑privacy‑coin status in favor of Monero. The vulnerability, present since 2022, prompted an emergency soft‑fork patch and sparked market panic.

The shock spread to the broader cryptocurrency market. Bitcoin slipped to about $62,500, a 1.3% daily decline, while Ethereum fell 10% to $1,545, dragging overall altcoin market capitalization below $880 billion. Leveraged positions worth roughly $468 million were erased, and the market experienced a $1.2 billion liquidation cascade. Analysts noted the event could shift focus toward alternative encryption methods such as fully homomorphic encryption.