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.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.