Trader Garret Bullish closed a 38K ZEC short position worth $58M via market orders, pushing ZEC price up 2.7% to $1,530 and driving Hyperliquid funding rates above 170%.
DeFi & Yields ·
Trader Garret Bullish closed a 38,000 ZEC short position worth $58 million over approximately 1.5 hours using market orders, resulting in a $35 million loss on the trade. The liquidation pushed ZEC's price from $1,490 to $1,530, a 2.7% increase, and drove funding rates on Hyperliquid above 170% annualized. Bullish maintained a long position of 1,333 BTC valued at $108 million on the same exchange.
The short closure appears connected to spot holdings accumulated in late December. Bullish withdrew 202,080 ZEC across two transactions from Binance valued at approximately $88.3 million at the time, shielded and then unshielded the entire amount. At current prices of $1,580 per ZEC, those holdings are worth roughly $320 million, positioning the short as a partial hedge against upside exposure on his Zcash position.
What remains unclear is whether the short position will be fully closed or if Bullish intends to re-establish a hedge at different levels. The magnitude of the loss and the rapid liquidation method suggest conviction in holding the spot position, though the longer-term strategy for managing Zcash exposure across spot and derivatives remains unspecified.