One major crypto whale, spotted in wallet 0xC385, deposited 3 million USDC to decentralized trading platform HyperLiquid within the past three hours. The wallet performed four independent transactions on Arbitrum, a fast and low-cost layer 2 scaling solution. According to blockchain data, there were deposits of $1.99 million, $1 million, and two smaller deposits of $17,050.
Whale 0xC385 deposited $3 million USDC into #HyperLiquid in the last 3 hours and opened a 2x short at 3,230 $ZEC ($1.41 million). https://t.co/Ix6GA80hjx pic.twitter.com/QbfpdKaqRA
— Lookonchain (@lookonchain) November 1, 2025
Whale opens 1.41 million shorts on Zcash
After transferring the funds, I underwrote a 2x leveraged short worth 1.41 million out of 3,230 ZEC (Zcash) in the same wallet. Its entry price is around $436.58, which means it is a bearish indicator for Privacy Coin. This action means that the trader is betting that the price of ZEC will fall. If the value of ZEC decreases by 1%, leverage will generate a 2% profit on this position.
Its native token, HYPE, is trading at around 44.08, with a daily trading volume of over 900 million, indicating an increase in liquidity on the platform. The sale took advantage of the low cost of Arbitrum’s infrastructure, which allows Whales to transfer millions of US dollars using little gas.
Zcash Essentials and Market Position
Zcash is one of the most popular privacy coins and employs zero-knowledge proofs (zk-SNARKs) to establish transaction privacy. Nevertheless, ongoing regulatory reviews of privacy tokens are still causing price fluctuations.
Whales’ underpositions are consistent with macro market uncertainty. It is possible that the whale observed an overbought signal or used its position as a hedge against a market pullback. Dropping to 380 will give you about 100,000 in profit, and anything much higher than 650 will threaten liquidation.
Crypto analysts at X described the move as calculated but bold. Other traders believe the whales are testing ZEC’s downside liquidity, while others fear the bet could lead to a short squeeze if bullish traders reverse their bets. This post by @lookonchain started going viral after observers on the chain monitored the address for follow-up assignments.
wider impact
This trade points to the impact whales have on the market. The 1.4 million ZEC deficit in emerging platforms such as HyperLiquid indicates more institutional level involvement in DeFi. The move also reflects Arbitrum’s belief in the scalability and stability of USDC, which is essential for executing large-scale transactions.
