Crypto’s leverage hangover hit hard in the last 24 hours. According to CoinGlass data cited by Crypto Potato, total liquidation value reached $1.21 billion across the market, with longs responsible for $935 million of that figure.
Zcash drives the shock
The sharpest move came from Zcash (ZEC). Crypto Potato reports that some community members identified a vulnerability in Zcash’s code. That finding triggered a wave of backlash, including from prominent trader Arthur Hayes, who said he disposed of his entire ZEC position.
The price reaction was violent. Crypto Potato says ZEC went from over $630 yesterday to under $300 earlier today, before it recovered some ground and reclaimed the $300 area.
That kind of drop tends to punish anyone using leverage on the way up. Crypto Potato adds that liquidation effects were immediate, citing CoinGlass that “$100 million worth of ZEC longs” were getting wrecked on a daily basis.
Ethereum slips under $1,650 as altcoins bleed
ZEC’s crash is not the only problem. Crypto Potato also points to Ethereum (ETH) underperforming after it lost the $2,000 support level earlier this week.
The report says ETH plunged to under $1,650 earlier today, which it frames as a new 14-month low. In the same window, Crypto Potato cites broader weakness in several tokens, including:
- SOL down more than 7%.
- HYPE down 9%.
- ADA down another 16%, after Cardano founder Charles Hoskinson said he would be taking a break.
Bitcoin is the one that mostly avoided the full spill. Crypto Potato says BTC dumped to around $61,000 earlier today, then rebounded by nearly $2,000.
Liquidations: 255,000 traders forced out
The headline number is the leverage wreckage. Crypto Potato cites CoinGlass liquidation data showing:
- More than 255,000 traders liquidated in the past 24 hours.
- Total wipe-out value of $1.21 billion.
- Long liquidations at $935 million.
Crypto Potato also notes that the liquidation event lines up with a market defined by “even higher fluctuations” across most assets in the last several hours.
CoinGlass liquidation snapshot (as reported by Crypto Potato)
| Metric (past 24 hours) | Value |
|---|---|
| Total liquidation value | $1.21B |
| Number of traders liquidated | 255,000+ |
| Long liquidation value | $935M |
| ZEC longs affected (daily, cited) | $100M |
Market share shift back toward BTC
When altcoins get hit, money often rotates back to the asset that’s still trading with the least drama. Crypto Potato says the altcoin rout helped Bitcoin’s market-share position.
It cites Bitcoin dominance rising by over 0.5% in a day, after it had dropped from 58% to 55.5% over the week. In other words, the move isn’t just about prices. It’s about where risk gets dumped first.
The policy-relevant subtext: leverage punishes uncertainty
This story isn’t about regulation or security in the abstract. Crypto Potato ties the biggest move to a Zcash code vulnerability and the immediate market response that followed, including a public position exit by Arthur Hayes.
Then the liquidation numbers show the cost of uncertainty when traders use leverage. In a market with sharp intraday swings, an identified issue plus fast price discovery can turn a technical problem into a forced de-risking event.
That matters because liquidation cascades tend to spread beyond the token that triggered them. Crypto Potato’s broader liquidation totals and the number of traders affected are a reminder that risk doesn’t respect token tickers.