Zcash (ZEC), Near Protocol (NEAR), and Worldcoin (WLD) experienced sharp price reversals following recent rallies, with ZEC falling nearly 50% from its $624 high on June 4 before rebounding approximately 18% over the past 24 hours. The ZEC decline was triggered by disclosure of a soundness flaw in Zcash's Orchard shielded pool, which developers patched through an emergency upgrade with no funds stolen or exploits occurring. The reversals illustrate how quickly sentiment-driven rallies can unwind in cryptocurrency markets, particularly when technical issues or profit-taking emerge after parabolic price moves.
Zcash Falls 50% After Orchard Pool Flaw Disclosure
ZEC had been one of 2026's standout performers, surging past $600 to an intraday high near $624 on June 4. The rally reversed within hours as a soundness flaw in Zcash's Orchard shielded pool sent the token tumbling. Security researcher Taylor Hornby disclosed the bug, which could in theory have allowed undetectable counterfeit ZEC, and developers moved to patch it through an emergency upgrade.
No funds were stolen and no exploit occurred in the wild, but the disclosure triggered a rush for the exits. ZEC fell roughly 50% in a single day, dipping as low as $264.80 before stabilizing. Its market capitalization slid from about $9 billion to near $5.37 billion, while roughly $82 million in leveraged positions were liquidated.
ZEC then rebounded about 18% over the following 24 hours, with 24-hour volume topping $2.9 billion, suggesting that buyers viewed the patched flaw as a contained event rather than a fatal one. The flaw cost ZEC its privacy-coin lead, dropping it from 11th to 16th by market cap.
NEAR and WLD Retrace Gains After Spring Rallies
Near Protocol's NEAR had climbed sharply through the spring, rising more than 200% from a February low as money rotated into AI-themed tokens, and it changed hands near $2.41 at its recent peak. It has since eased back toward $1.91, unwinding much of that late surge.
Worldcoin's WLD followed a similar arc on a compressed timeline. The token, issued by the iris-scanning identity project co-founded by OpenAI's Sam Altman, jumped roughly 60% recently, reaching about $0.55, before sliding back toward $0.40. The drop left WLD roughly 35% below its recent peak near $0.62.
Arthur Hayes Exits Positions in All Three Tokens
Part of the attention surrounding the above tokens came from BitMEX co-founder Arthur Hayes, whose Maelstrom fund had publicly backed all three before exiting. Hayes set a $10 price target on WLD and framed it as a liquid proxy for an AI and SpaceX listing trade, then disclosed selling the position days later, posting that the chart was "going in the wrong direction."
He also dumped his entire ZEC position after the Orchard flaw surfaced, declaring "The Holy Trinity is dead." For the tokens themselves, the lesson became one of how quickly narrative-driven rallies can reverse.
Traders Monitor Support Levels Post-Correction
For ZEC, the test will be whether its post-patch rebound builds into a durable recovery or fades as traders weigh the reputational hit of a four-year-old bug in a flagship privacy pool. For NEAR and WLD, the focus will fall on whether the broader AI-token bid that lifted them in the first place returns.
NEAR sits at $1.91 and WLD at $0.41 as traders watch support levels for each closely. What the episode makes clear is that all three rallies were tightly tied to sentiment rather than fundamentals that shifted overnight. With the hype unwound, each token now faces the hard task of building a base without a viral narrative to carry it.
FAQ
What caused Zcash to fall 50% from its June 4 high?
Zcash fell roughly 50% from its $624 high on June 4 after security researcher Taylor Hornby disclosed a soundness flaw in Zcash's Orchard shielded pool. Developers patched the bug through an emergency upgrade, and no funds were stolen or exploits occurred in the wild, but the disclosure triggered a sell-off that sent ZEC as low as $264.80 before it rebounded approximately 18% over the following 24 hours.
Why did NEAR and WLD prices retrace after their recent rallies?
NEAR had climbed more than 200% from a February low as money rotated into AI-themed tokens, reaching a recent peak near $2.41 before easing back toward $1.91. WLD jumped roughly 60% to about $0.55 before sliding back toward $0.40. Both tokens gave back gains following profit-taking and after BitMEX co-founder Arthur Hayes disclosed exiting his positions in both assets.
