A massive contrarian trade on Hyperliquid just paid off in a staggering way. According to the on-chain update from Lookonchain, the trader known as Garrett Jin closed a short position on Zcash (ZEC) for an $11.24 million profit – a move that went directly against the privacy coin’s strong upward momentum.
The trade stands out because ZEC has been among the top performing altcoins this week, as reported by BlockchainReporter in a weekly gainers round-up. ZEC spiked over 58% for the week leading into this closure, joining tokens like TON and SIREN as some of the biggest movers. The rally likely encouraged retail buying, but big capital on Hyperliquid had other plans. Jin built a short position, betting that the price surge would reverse. That conviction appears to have been well-placed, at least for this particular leg of the trade.
Contrarian Trade on Hyperliquid
Hyperliquid, a derivatives DEX known for its deep liquidity and high-leverage perps, has become a popular venue for large traders precisely because it allows for such aggressive positioning. Hypurrscan data shows that the address linked to Jin still holds another short position on ZEC, with an unrealized profit exceeding $21.5 million. This suggests the trader is not done, even after banking an eight-figure realized gain. Jin actively shorted into the rally, a strategy that typically requires strong conviction and precise timing. The ability to hold a heavily in-the-red position while a coin pumps — and to eventually close at a massive profit — points to either a deep fundamental bear thesis or extremely disciplined technical execution.
Hyperliquid’s perpetual swap market allows short positions to be built without borrowing spot tokens, meaning a whale can express a bearish view without needing to borrow from lending protocols. This structure has attracted a new class of on-chain speculators, and Jin appears to be among the most aggressive. The $11.24 million close is a concrete signal that at least one well-capitalized entity views ZEC’s surge as overdone. However, the remaining $21.5 million in unrealized profit could indicate that Jin expects a larger pullback, or that he is simply managing risk by taking partial profits.
What This Means for ZEC’s Rally
For traders watching the privacy coin sector, this whale activity introduces a note of caution. ZEC has seen increased attention following regulatory developments and shifting narratives around privacy assets, but the presence of such large shorts suggests the rally is not universally accepted as sustainable. Without data on aggregate short positions across exchanges, it’s impossible to know whether this is an isolated whale trade or part of a broader bearish consensus. If other large players are also short, the market could face a sharp correction once the momentum fades.
What’s clear is that Jin’s bet has already delivered an eight-figure realized profit, while his remaining position hangs in the balance. The trader is willing to swim against the tide with size that moves the market, and for now, the tide has not washed him out. Whether the open short will prove as profitable as the closed one remains an open question, and it sits squarely in the category of what to watch next.
