Markets rocked: $1.12B liquidated, Zcash flaw exposed,…

Over $1.12 billion was liquidated in the past 24 hours, with long positions absorbing the bulk of the damage at $949 million — a sharp reminder of how quickly leveraged crypto markets can unwind. The carnage coincided with Arthur Hayes dumping his entire $HYPE and $NEAR positions, citing rising energy prices and expectations that market highs will peak before September as AI mega-IPOs absorb capital.

Why it matters

The macro and regulatory backdrop is shifting fast. The US House voted 215-208 to strip Trump of unilateral authority to continue military action against Iran, adding geopolitical uncertainty to already-stressed markets. Separately, a key House committee is preparing to drop crypto tax legislation as early as Friday, which could have sweeping implications for on-chain activity and reporting obligations.

On the stablecoin front, Stripe, Visa, Mastercard, and Coinbase are reportedly forming a consortium to launch a new stablecoin to rival Circle and Tether — while JPMorgan, Citi, and major US banks plan a tokenized deposit network next year. Peter Schiff is already predicting Tether's market cap will eventually surpass both ETH and BTC.

Market impact

Zcash's Zooko disclosed a critical counterfeiting vulnerability in the Orchard pool that could have allowed unlimited undetectable $ZEC minting. Discovered May 29 and patched by June 2, the flaw was contained — but the disclosure will weigh on ZEC sentiment. Meanwhile, Anthropic has tapped Morgan Stanley, Goldman Sachs, and JPMorgan to lead its IPO, and Coinbase is launching pre-IPO perpetual futures starting with SpaceX — two signals that traditional and crypto capital markets are converging fast.