ZEC Rises 8.55% Over 24 Hours as Significant Short Covering and Position Flips Occur

ZEC Sees Notable Price Swings and Short Position Profits

On December 2, 2025, ZEC surged by 8.55% in a single day, reaching a value of $346.59. Over the previous week, however, the cryptocurrency declined by 23.78%, and over the past month, it dropped by 12.71%. Despite these short-term losses, ZEC has soared by 563.82% over the last year.

Significant ZEC Short Position Yields Over $5 Million in Realized Gains

Recently, a major short position in ZEC transitioned from a substantial loss to a sizable profit. The trader reduced their exposure from $23.21 million to $9.88 million, locking in more than $5 million in gains. This turnaround is remarkable, considering the position previously faced a floating loss nearing $21 million in early October.

The short was initiated on October 10 at around $184 per ZEC, with additional entries raising the average price to $419. After enduring pressure throughout October, the subsequent price drop enabled a profitable exit. As of the latest update, the position still holds an unrealized profit of $2.43 million, reflecting a 125% return.

Diversified Short Positions: ETH Shorts Lead in Profits

The same trader is also active in shorting other major cryptocurrencies, including ETH, MON, and HYPE, indicating a broad bearish outlook. Among these, the ETH short stands out, with an average entry price of $4,014 and a current floating profit of $9.52 million—a 643% gain—on a $22.16 million position.

Additionally, a newly opened 3x leveraged short on MON has generated an unrealized profit of $1.82 million (an 89% gain) on a $6.14 million position. These trades represent the largest short positions in both ZEC and MON on the Hyperliquid platform.

Volatility and Strategic Liquidations Drive ZEC Short Success

The ZEC short position has attracted considerable attention due to its size and the dramatic shift from loss to profit. This rapid reversal highlights the asset's high volatility and the importance of timing in executing short liquidations.

Initially, the position risked a $3 million drawdown and faced a peak floating loss of $21 million in October. The recent price correction not only erased these losses but also resulted in a net profit. This outcome illustrates how sudden liquidity changes and price volatility can significantly affect large leveraged trades.

Market Trends and Ongoing Position Monitoring

ZEC's recent price action has been turbulent, with sharp declines over the past week and month, contrasted by a dramatic annual increase. These fluctuations underscore the asset's sensitivity to broader market trends and liquidity events.

Ongoing monitoring shows that the same trader is actively managing short positions in other assets, particularly ETH, where profits are even more substantial. This diversified approach suggests a calculated strategy to manage risk while capitalizing on bearish market conditions.

Outlook: Analysts Remain Cautious Amid Ongoing Volatility

Although the ZEC short has delivered impressive gains in a typically high-risk environment, market experts remain wary of the asset's unpredictable nature. While recent profits are notable, the long-term outlook is still uncertain.

With ZEC currently trading at $346.59 and posting an 8.55% gain in 24 hours, the market remains highly dynamic. Some short positions have rebounded into profit, while others, especially in ETH and other leading cryptocurrencies, continue to experience unrealized losses.