Roughly $1.12 billion in crypto positions were liquidated over the past 24 hours, with $949 million on the long side — a textbook flush that caught leveraged buyers offsides. The pain hit alongside a series of structural developments: Zcash founder Zooko disclosed a critical counterfeiting vulnerability in Zcash's Orchard pool that could have enabled unlimited undetectable $ZEC minting, discovered May 29 and patched by June 2.
A key US House committee is preparing to release crypto tax legislation as early as Friday, per Bloomberg, putting a tax-policy floor under an industry that has so far operated under IRS guidance more than statute. On the institutional side, Stripe, Visa, Mastercard, and Coinbase are forming a consortium to launch a stablecoin rivaling Circle and Tether, while JPMorgan, Citi, and major US banks are planning a tokenized deposit network for next year. Anthropic is also circling the capital markets — the AI lab has tapped Morgan Stanley, Goldman Sachs, and JPMorgan to lead its IPO.
Why it matters
The liquidation print confirms the market's directional lean: leveraged longs are being punished while risk-off signals pile up. Arthur Hayes disclosed he dumped his full $HYPE and $NEAR positions, citing rising energy prices, upcoming AI mega-IPOs, and a thesis that market highs will peak before September — the kind of positioning rotation that tends to drag majors with it. Peter Schiff went further, claiming Tether's market cap will surpass Ethereum and eventually Bitcoin.
The Zcash disclosure is the kind of event that briefly resurfaces the existential tail risk crypto spent a decade escaping: a counterfeiting bug patched quietly does not undo the reputational cost. Coinbase's new pre-IPO perpetual futures, starting with SpaceX, and Apple's reported September Siri relaunch with Google and Nvidia support round out a day that touched every corner of the stack — DeFi, stablecoins, tokenized deposits, AI, and consumer hardware.
Frequently asked questions
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How much was liquidated in crypto over the past 24 hours?
Roughly $1.12 billion in crypto positions were liquidated in 24 hours, with $949 million hitting the long side, per the seed data.
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What is the Zcash Orchard counterfeiting vulnerability?
Zcash founder Zooko disclosed a critical counterfeiting flaw in Zcash's Orchard pool that could have enabled unlimited undetectable $ZEC minting. It was discovered May 29 and patched by June 2.
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What is the US House crypto tax legislation expected this week?
A key US House committee is preparing to release crypto tax legislation as early as Friday, per Bloomberg, moving the industry from IRS guidance toward a statutory framework.
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Which firms are forming the new stablecoin consortium?
Stripe, Visa, Mastercard, and Coinbase are forming a consortium to launch a stablecoin intended to rival Circle and Tether, per The Information.
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Why is Arthur Hayes exiting HYPE and NEAR positions now?
Arthur Hayes disclosed he dumped his full $HYPE and $NEAR positions, citing rising energy prices, upcoming AI mega-IPOs, and a thesis that market highs will peak before September.
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