Mass Liquidations and Wallet Dumps Sink ZKJ

Polyhedra Network says a mix of coordinated liquidity pulls, aggressive market-maker selling, and cascading liquidations drove its ZKJ token from $1.92 to $0.29 in a single afternoon on 15 June.

A first-pass incident report, released late Monday, points to three core triggers:

• Liquidity yanked from PancakeSwap: Six wallets collectively withdrew millions of dollars from the ZKJ/KOGE pool, then dumped roughly 3.3 million ZKJ. Because PancakeSwap V3 concentrates liquidity within narrow price bands, depth vanished once the pair fell outside its range, accelerating the slide.
• Market-maker outflows: Wintermute shifted 3.39 million ZKJ to centralized exchanges between 15:45 and 17:14 UTC, coinciding with the sharpest leg lower. Its on-chain balance shrank from 3.41 million tokens to just 22,688.
• Forced liquidations: As spot prices collapsed, long-leveraged trades on venues such as Bybit were wiped out. Polyhedra estimates $94 million in longs were closed between 15:00 and 17:00 UTC, including at least six single-events larger than $1 million.

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Polyhedra attempted to stem the rout by injecting $30 million in stablecoin liquidity, but falling prices instantly converted those funds into additional ZKJ, offering little relief. The team says a full forensic review is under way and a more detailed report will follow.