The cryptocurrency market experienced a significant fluctuation with the price of Zcash (ZEC) rebounding by up to 30% after developers fixed a vulnerability in the blockchain's Orchard privacy pool.
The bug, which had gone undetected since May 2022, could have allowed an attacker to mint unlimited counterfeit ZEC. The Zcash ecosystem launched an emergency fix on June 1, but investors were initially concerned that a hacker may have exploited the shielded pool without leaving any detectable trace over the past few years.
Despite initial losses reaching as much as 48%, the price of ZEC has now risen to $369. The recovery may be attributed to a 'short squeeze' as traders expecting ZEC price to drop further sought cover.