BitMEX co-founder, Arthur Hayes, liquidates all his ZEC, HYPE, and NEAR tokens

• Hayes exited ZEC after an Orchard privacy bug raised supply doubts.
• He also liquidated HYPE and NEAR while rotating his portfolio.
• The Zcash flaw was patched, but future exploitation cannot be ruled out.

Arthur Hayes, co-founder of BitMEX, has fully exited his positions in Zcash (ZEC), Hyperliquid (HYPE), and NEAR Protocol (NEAR).

The decision comes at a time when the crypto market is still digesting the implications of a flaw found in the Orchard shielded pool, a core component of Zcash’s privacy system.

The move has drawn attention across the digital asset space, not only because of Hayes’ profile as a macro investor, but also due to the nature of the vulnerability, which raised questions about the integrity of ZEC’s supply mechanics inside its shielded environment.

Orchard vulnerability triggers uncertainty in Zcash

The trigger for the sell-off was a vulnerability discovered in the Orchard shielded pool, which is designed to enable private transactions on the Zcash network using zero-knowledge proofs.

The issue raised concerns that, under certain conditions, it may have been theoretically possible to create counterfeit ZEC within the shielded system w...