Following the flash crash of ZKJ tokens, which misplaced greater than 85% of its worth in simply in the future on June 15, 2025, Polyhedra Community has revealed a preliminary evaluation report on the incident.
The collapse was brought on by a coordinated on-chain liquidity assault, a big switch to centralized change of winter mute tokens (CEX), and liquidation of leveraged areas within the course of, in accordance with the report.
Pancakeswap's deliberate transfer into the liquidity pool is alleged to have performed a significant function within the collapse of the ZKJ/Koge pair. Six totally different addresses have withdrawn liquidity in complete hundreds of thousands of {dollars} and have run aggressive ZKJ gross sales, in accordance with the report.
- 0x1A29…599: We bought 1.57 million ZKJ and pulled out LP tokens value round $4.3 million.
- 0x0781…DE7: Koge transformed to ZKJ, bought 1 million ZKJ and made a $3.45 million deal.
- 0x6ad3…ebb: He purchased 772 thousand ZKJs from the tackle above and bought them in 8 minutes.
Different addresses bought a complete of 1.8 million ZKJ in the identical seconds.
This assault directed gross sales strain on deeper liquid ZKJ/USDT pairs slightly than low liquid liquid Koge/USDT pairs. The centralized liquidity construction of the Pancakeswap V3 additionally precipitated important losses in depth when costs had been out of vary, accelerated value drops.
Earlier than the crash, ZKJ/Koge grew to become a preferred pair of the Binance Alpha agricultural marketing campaign. Nevertheless, after Binance modified its factors system in early June, the rewards for such transactions fell, and liquidity assist started to weaken.
In an try and cease the decline, the Polyhedra community staff offered about $30 million in stability in USDT, USDC, BNB and extra by Pancakeswap's Dex Market Maker. Nevertheless, because of the value drop, all of those tokens had been mechanically transformed to ZKJ, which was inadequate to alleviate gross sales strain.
Particularly, exchanges like Bybit have settled one after one other, leveraged areas opened because of decrease spot costs. A protracted place value a complete of $94 million was pressured to shut between 3pm and 5pm. At the least six main liquidation occasions, every with over $1 million, occurred at 15:57 UTC alone.
WinterMute, one of many main market makers, made a notable transfer in the course of the crash. The corporate's tackle forwarded a complete of three.39 million ZKJ to the central change tackle between 15:45 and 17:14 on June fifteenth. Throughout this era, ZKJ costs fell from $1.92 to $0.29. Ethereum's WinterMute pockets stability has dropped from 3.41 million ZKJ to 22,688 ZKJ.
Polyhedra Community has introduced that these occasions are nonetheless within the preliminary analysis part, and detailed evaluation of all actions on the chain is underway, with the report being up to date within the coming days.
*This isn’t funding recommendation.
