- Hayes pulled out of ZEC after Orchard’s secret mistake raised suspicions.
- He also broke HYPE and NEAR while spinning his record.
- The Zcash bug was fixed, but future use cannot be ruled out.
Arthur Hayes, co-founder of BitMEX, has resigned from Zcash (ZEC), Hyperliquid (HYPE), and NEAR Protocol (OUTSIDE).
The decision comes at a time when the crypto market is still digesting the consequences of the flaws found in the Orchard shielded pool, a key part of Zcash’s encryption.
The move has attracted attention in the digital space, not only because of Hayes’ reputation as a major investor, but also because of the risk, which raised questions about the integrity of the ZEC delivery system within the security environment.
The vulnerability of Orchard creates uncertainty in Zcash
The trigger for the sale was a vulnerability discovered in Orchard’s secure pool, which is designed to allow private transactions on the Zcash network using zero-knowledge.
The article raised concerns that, in some cases, it may have been possible to create a fake ZEC within a secure system without early detection.
While the developers of Zcash moved quickly to send an emergency patch, the main concern was not the existence of the bug, but the inability to verify whether it had been used before it was fixed.
Because secure channels are designed to be private, there is no straightforward way to review all transactions in a way that can completely eliminate past abuse.
Market reactions were quick and sharp.
ZEC sold the most, and the price drops by 45% for the duration of the action.
Liquidity quickly dwindled as traders rushed to reduce exposure to the stock after raising doubts surrounding its credibility.
The event also sparked a long-running debate around blockchain privacy practices.
Although anonymous proofs are considered to be one of the strongest privacy features available on the blockchain, they also present challenges that can make the verification of the history of changes in the world more difficult compared to transparent blockchains.
Arthur Hayes has left ZEC, HYPE, and NEAR
Based on this, Mr. Arthur Hayes confirmed that he liquidated all his holdings in ZEC.
Hayes also closed positions in HYPE and NEAR, showing a large shift rather than a single factor.
Hayes explained the situation bluntly, saying that his original doctrine of the “Holy Trinity” no longer worked.
Hayes’ most important story was not confirmed rape. Rather, it was the existence of an uncertain uncertainty.
Even with the patch in place, the failure to fully verify whether a fraudulent transaction had occurred prior to fixing it created a risk that they no longer wanted to carry confidential information.
The Holy Trinity is dead. Unfortunately due to the Orchard Pool project, I lost everything $ZEC bag.
– Although I think it is unlikely to make any production, it cannot be proven impossible
– Secrets of AI, govt, big tech issues need perfection…— Arthur Hayes (@CryptoHayes) June 5, 2026
On the exit side of ZEC, Hayes also removed positions in HYPE and NEAR.
Although no direct connection has been identified between the stock and the crash of Zcash, the simultaneous sale indicates a major restructuring of the currency rather than speculation.
