{"id":32250,"date":"2025-06-17T12:46:56","date_gmt":"2025-06-17T12:46:56","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=32250"},"modified":"2025-06-17T12:46:56","modified_gmt":"2025-06-17T12:46:56","slug":"polyhedra-blames-liquidity-attacks-for-sudden-80-price-drop-in-zkj-promises-buyback","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=32250","title":{"rendered":"Polyhedra Blames Liquidity Attacks for Sudden 80% Price Drop in ZKJ, Promises Buyback"},"content":{"rendered":"
\n

Polyhedra, a crypto protocol whose company reached unicorn status<\/a> last year, is promising a buyback plan and additional steps to rebuild trust in the crypto community, days after its token fell more than 80% within minutes.<\/p>\n

\u201cNow we need to figure out the current situation and we need to prevent future financial attack,\u201d founder Tiancheng Xie wrote in an X post earlier Tuesday.\u201d<\/p>\n

\u201cWe will buy back more,\u201d Xie added.<\/p>\n

On June 15, ZKJ plunged from roughly $2 to just 32 cents in under an hour, losing nearly $500 million in market cap.<\/p>\n

An initial post\u2011mortem<\/a> released in Asian morning hours laid out various factors resulting in the collapse, including a supposed coordinated liquidity attack on PancakeSwap\u2019s ZKJ\/KOGE pool, substantial ZKJ deposits by market-making company Wintermute into centralized exchanges, and a cascade of liquidations on CEXs like Bybit.<\/p>\n

On-chain data reveals that several addresses had drained millions from the ZKJ\/KOGE pool. One removed about $4.3 million in liquidity provider (LP) tokens and dumped 1.57 million ZKJ; others followed, unloading close to 1 million ZKJ each.<\/p>\n

When the shallow KOGE\/USDT pool couldn\u2019t absorb the sell pressure, activity spilled over into the deeper ZKJ\/USDT pool, triggering a liquidity spiral, the team claimed.<\/p>\n

Further pressure came from a Wintermute-associated address that deposited over 3.39 million ZKJ into centralized exchanges in the crash window, the team said. However, in an X post, Wintermute co-founder Evgeny Gaevoy said the team<\/a> was selling spot and going long via ZKJ-tracked futures.<\/p>\n

As spot prices collapsed, roughly $94 million in leveraged long positions were liquidated between 12:00 and 14:00 UTC, including multiple six-figure margin calls that compounded the crash.<\/p>\n

To stem the hemorrhage, Polyhedra\u2019s team injected approximately $30 million in USDT, USDC, and BNB as DEX liquidity. It added that no ZKJ holdings belonging to the team were sold.<\/p>\n

Polyhedra affirms it\u2019s conducting a full technical investigation, and its upcoming buyback initiative aims to both offset the attack\u2019s impact and deter similar future exploits.<\/p>\n

Token prices rose by more than 50% following the release of the crash report, but all gains were reversed throughout the day, and prices are now up just 1.3% over the past 24 hours.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Polyhedra, a crypto protocol whose company reached unicorn status last year, is promising a buyback plan and additional steps to rebuild trust in the crypto community, days after its token fell more than 80% within minutes. \u201cNow we need to figure out the current situation and we need to prevent future financial attack,\u201d founder Tiancheng […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-32250","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/32250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32250"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/32250\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}