Zcash (ZEC) recovered 41.5% from local lows, reaching $429.08 against a successful resolution of the critical vulnerability in the shielded Orchard pool. Bagh, which theoretically allowed for unlimited counterfeit coin issuance, was discovered by researcher Taylor Hornby. For a secure fix, the team adopted a two-step approach: first, software was temporarily disabled in the pool, and on 3 June, hardfork NU6.2 was activated, fully restoring network functionality.

The June 4 disclosure caused panic and caused ZEC prices to plummet by more than 50%, while BitMEX co-founder Arthur Hayes announced the complete liquidation of his position in the token. However, coordinated action by the Zcash Open Development Lab (ZODL) with mining pools and exchanges helped to stabilize the situation. ZODL founder Josh Swihart noted that the incident allowed not only to close a vulnerability, but also to practically test crisis response procedures, strengthening the network’s resilience.

To prevent similar incidents in the future and restore community trust, ZODL together with Zcash Foundation and Shielded Labs have submitted a proposal for the creation of a new Ironwood shield pool. It will be based on Orchard architecture, but will undergo additional independent audits and strict formal code verification.