Arthur Hayes Abandoned ZEC – Here’s What Triggered the Decision

• Arthur Hayes sold his entire ZEC position after concerns about the Orchard pool exploit.
• A critical vulnerability in Zcash’s Orchard privacy pool prompted his exit.
• No funds were stolen because Zcash patched the vulnerability via the emergency hard fork NU6.2.

BitMEX co-founder Arthur Hayes has sold all of his $ZEC holdings after a key vulnerability in Zcash’s Orchard protected pool raised concerns he felt he couldn’t ignore. 

Hayes claimed that while he believes actual exploitation is unlikely, the inability to rule it out cryptographically compelled him to leave the trade.

Critical Bug Discovered in the ZEC Privacy Pool

A significant soundness issue has recently surfaced in the Orchard shielded pool of the privacy network. 

This critical flaw potentially allowed malicious actors to execute double-spending attacks. 

Consequently, the discovery severely threatened the fundamental integrity of the entire privacy blockchain system.

Moreover, it posed a security risk, causing significant fear among high-profile institutional asset holders. 

Arthur Hayes apparently noticed these technical issues while doing a pretty standard read of the market. 

Because of that, he chose to eliminate his exposure to the asset entirely, without gradual steps.

He also mentioned serious doubts about the long-term structural consequences, and he seemed to suggest that those technical uncertainties couldn’t really be handled through the usual communication channels. 

In the end, these unanswered questions left his final decision to leave the market.

How the Vulnerability Impacted ZEC Market Value

This surprising sell-off comes as a complete turnaround from his market prediction. 

Many investors had been paying careful attention to Hayes’ Hyperliquid stake, thanks in part to his public statements about the $150 aim. 

Instead, the asset came under immediate downward pressure as news of his exit began to circulate. 

Investors kept their eyes on the charts, looking for any hint of a wider systemic capitulation.

Still, the core development team moved quickly to keep the fear under control and prevent it from spreading too far.

Fortunately, blockchain data confirms that no actual exploitation occurred before the discovery. 

During this critical time, none of the user’s funds were stolen or compromised. 

Hence, the network did not suffer a financial disaster to its global community.

Technical Fix Stabilizes the ZEC Ecosystem

The Electric Coin Company successfully deployed an emergency network upgrade to fix the pool. 

This critical patch rolled out smoothly via the official NU6.2 hard fork. 

Overall, the deployment was finished on June 3, 2026, which in turn ensured the protocol’s security.

After the successful upgrade, the ZEC token has been seen as extremely resilient on major exchanges. 

The price has not only levelled off but also recovered, settling around $612. This bounce was a good 9.5% weekly gain.

The incident, however, serves as a reminder of ongoing security concerns surrounding privacy-focused digital assets. 

Although the technical aspect is resolved, many traders remain very cautious. 

Now, the wider market is on the lookout for how other whales do their privacy tokens.

Despite the massive hole in the privacy pool, the developers acted quickly and to their credit, with no money lost, but this was not enough to keep Arthur Hayes on board.

The post Arthur Hayes Abandoned ZEC – Here’s What Triggered the Decision appeared first on Live Bitcoin News.