LATEST: Developers of the altcoin whose price plummeted by 85% in an instant explained the reason for the dump! Claims of an attack were made.

On June 15, 2025, following a sudden collapse of the ZKJ token, which lost over 85% of its value in just one day, Polyhedra Network released a preliminary assessment report regarding the incident.

According to the report, the collapse is attributed to on-chain coordinated liquidity attacks, significant token transfers made by Wintermute to centralized exchanges (CEX), and the liquidation of leveraged positions that occurred during this process.

It is reported that planned moves towards liquidity pools on PancakeSwap played a dominant role in the collapse of the ZKJ/KOGE pair. According to the report, six different addresses withdrew millions of dollars in total liquidity and then executed aggressive ZKJ sales:

• 0x1A29…599: Withdrawing approximately $4.3 million worth of LP tokens, sold 1.57 million ZKJ.
• 0x0781…dE7: Converted 3.45 million dollars worth of KOGE to ZKJ and sold 1 million ZKJ.
• 0x6aD3…EBb: Sold 772 thousand ZKJ from the above address within 8 minutes.

Other addresses participated in a total sale of 1.8 million ZKJ within the same minute.

This attack directed the selling pressure towards the ZKJ/USDT pair, which has deeper liquidity, rather than the KOGE/USDT pair that has low USDT liquidity. The concentrated liquidity structure in PancakeSwap V3 also caused a significant loss of depth when the price range was exceeded, accelerating the price drop.

Before the collapse, the ZKJ/KOGE pair had become a popular pair for Binance Alpha farming campaigns. However, at the beginning of June, with Binance changing its points system, the rewards for such transactions decreased and liquidity support began to weaken.

The Polyhedra Network team provided approximately $30 million in liquidity through DEX market makers on PancakeSwap with stablecoins such as USDT, USDC, and BNB in order to stop the decline. However, due to falling prices, all these tokens were automatically converted to ZKJ, which was insufficient to alleviate the selling pressure.

Especially with the decline in spot prices on exchanges like Bybit, leveraged positions that were opened have been consecutively liquidated. A total of 94 million dollars in long positions were forcibly closed between 15:00 and 17:00. At least six significant liquidation events occurred around 15:57 UTC, each exceeding 1 million dollars.

Leading market maker Wintermute made notable moves during the collapse. The company's address transferred a total of 3.39 million ZKJ to centralized exchange addresses between June 15, 15:45 and 17:14. During this process, the ZKJ price fell from $1.92 to $0.29. Wintermute's wallet balance on Ethereum decreased from 3.41 million ZKJ to 22,688 ZKJ.

Polyhedra Network announced that these events are still in the preliminary assessment phase, that a detailed analysis of all activities on the chain is ongoing, and that the report will be updated in the coming days.

*This is not investment advice.

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