$35.44 million in realized losses. The largest known short position on Zcash at Hyperliquid has disappeared. The wallet attributed to Garrett Jin bought back its 38,000 ZEC short, representing a position worth approximately $58.5 million when it was closed. However, the move does not mean the trader is abandoning Zcash: he still holds 202,078 ZEC spot, valued at around $309 million, with estimated unrealized gains of more than $220 million.
Zcash ultimately forces Garrett Jin to close
The outcome came after several weeks of pressure. Bref Crypto was already tracking the position when it showed $25.7 million in unrealized losses with just 32,760 ZEC sold short. Jin continued adding to the short even as Zcash kept rising.
The position eventually reached approximately 40,000 ZEC before returning to 38,000 ZEC. As recently as Friday, it showed nearly $34 million in unrealized losses, with an average entry price of around $670.
This time, the loss became real.
According to Lookonchain, the wallet closed the entire short, worth approximately $58.5 million, for $35.44 million in losses. The buyback was reportedly executed on the market over roughly one and a half hours. This single operation is said to have helped push ZEC up by approximately 2.7%, from $1,490 to $1,530.
This is the full force of a large short in a market that is less liquid than Bitcoin or Ethereum. To close a short position, the trader must buy back the asset. When 38,000 ZEC are rapidly bought back, the short covering itself can push the price higher.
The trader still holds 202,078 ZEC spot
This is the detail that completely changes the story.
Garrett Jin would not actually be bearish on his overall Zcash exposure. Data tracked by Lookonchain shows that he still holds 202,078 ZEC at an on-chain address, worth nearly $309.25 million at the prices recorded when the short was closed. His unrealized profit was then estimated at approximately $221 million.
These ZEC were reportedly withdrawn from Binance in December 2025 at an average price close to $437. Jin himself published details concerning two withdrawals totaling approximately 202,100 ZEC, strengthening the attribution of the address tracked by on-chain analysts.
The short then becomes much easier to understand.
With more than 200,000 ZEC held spot, selling 38,000 ZEC short can serve as a partial hedge. If Zcash falls, gains on the short offset part of the loss on the spot portfolio. If ZEC continues rising, the short loses money, but the 202,078 ZEC held directly gain much more.
Bref Crypto had already observed that Zcash’s rise went far beyond a simple short squeeze. Grayscale’s U.S. ETF, the return of the privacy narrative and increased mining activity added new drivers to the rally.
In other words, Jin has just lost $35 million on one part of his strategy while remaining very substantially profitable on the other.
The Zcash rally destroys short positions
Garrett Jin’s exit nevertheless adds another spectacular episode to the Zcash rally.
At the beginning of September, ZEC broke above $1,000 for the first time in nearly a decade under normal market conditions. A few days later, it exceeded $1,200. The token now trades around $1,500 after rising by more than 170% in one month, according to some data series.
Short sellers paid a heavy price for this acceleration.
Another trader who previously had an 89% win rate had already closed a 12,285 ZEC short with a $10.68 million loss. Jin’s position had become the largest still-open position on Hyperliquid before it was closed.
The move also shows why Grayscale’s bet on Zcash and privacy can no longer be viewed as a mere secondary narrative. The price of ZEC has moved to a different scale, institutional products now exist and derivatives have accumulated enough leverage to sharply amplify every move.
Jin’s exit does not mean, however, that Zcash can continue indefinitely at the same pace. It even removes one of the market’s largest potential sources of forced buying: his 38,000 ZEC have now been bought back.
But the episode will remain remarkable.
A trader could be down $35.44 million on Zcash while simultaneously up more than $220 million on Zcash.
It simply depended on which side of the portfolio one was looking at.
