Bearish bets on privacy-focused zcash (ZEC) climbed to a record as the token slumped as much as 50% in 24 hours after a now-plugged vulnerability in its Orchard pool was disclosed.

ZEC recorded roughly $118 million in forced liquidations over the period, CoinGlass data shows.

That is remarkably small for a token whose price halved, suggesting the selling came mostly from spot held tokens rather than a futures-driven move. Only about 14% of zcash’s leveraged positions got wiped out; the number would have been far larger if a leverage cascade had driven the slide.

In comparison, about $335 million in bitcoin BTC$61,029.69-tracked futures were liquidated over the same window even though the largest cryptocurrency fell only a few percent. Ether slipped a similar amount and liquidated $278 million.

Open interest — the total value of unsettled futures bets — rose to a record high in ZEC terms, suggesting traders opened new positions rather than closing them.

The long/short ratio, the number of traders betting on an increase versus a decline, shows those positions skewed bearish. On Binance, the ratio sat below 1 across retail investors at 0.77, whale accounts at 0.80 and whale positions at 0.85. Traders on OKX were more bearish, with retail at 0.67 and whale accounts at 0.72. Only Bybit’s retail traders leaned long, at 1.49.

Short investors sell securities they don’t actually own, betting the price will drop before they need to close out their positions and they’ll profit from the difference. Long investors own the securities to benefit from any increase.

The ratio indicates zcash is heavily shorted after a spot-led drop. If the selling slows and the price steadies, those shorts could be forced to buy to cover their positions, fueling a sharp bounce.

It’s worth remembering that ZEC, even after losing more than half its value in two weeks, is still up roughly 490% over the past year.

No way of knowing

The catalyst for the price drop was the disclosure by nonprofit Zcash developer Shielded Labs of a vulnerability in Zcash’s Orchard privacy pool that, if exploited, could have let an attacker create counterfeit ZEC that no one could detect.

The Orchard flaw had been live since the pool debuted in May 2022, going unnoticed for four years. It was found only last week by security engineer Taylor Hornby using Anthropic’s Opus 4.8 model and patched in an emergency fix by June 1.

The damage is less about the bug itself, which is now closed, than what Shielded Labs admitted alongside it. Because of the way Orchard’s privacy works, there is no cryptographic way to prove whether anyone exploited the flaw before it was fixed.

The firm said it probably was not, but it cannot be sure, and that uncertainty hangs over the token’s entire supply.

Arthur Hayes, the chief investment officer of Maelstrom, said he sold his entire zcash position as a result.

The memecoin “cult” that encouraged a raid on Punch the monkey’s enclosure at Ichikawa Zoo has offered a $50,000 bounty to anybody willing to skydive into a 2026 World Cup match and invade the pitch.

This outlandish request was part of a new bounty program launched by memecoin platform Pump Fun.

The bounty, uploaded by thememecoincult, had a 30-day deadline and offered $40,000 to anybody willing to skydive into an ongoing World Cup match while dressed as a mascot for $MEMECOIN. 

It also offered takers an extra $10,000 if they could run around the pitch for 30 seconds after they land.

The bounty was live for roughly 14 hours. However, Pump Fun and its moderators — or the memecoin group itself — appear to have removed it.

Read more: Crypto clout chasers arrested after Punch the monkey stunt

The bounty said, “Please make sure to obey local laws, get permission if necessary, and be safe.” 

It stressed that it required footage of the stunt to be acknowledged by the media and that it wouldn’t accept AI-generated footage. 

Anybody looking to complete the challenge and pocket the $50,000 is unlikely to be granted permission. Indeed, the Canadian soccer Northern Super League states, “Fans are prohibited from entering the pitch or restricted areas,” so it’s safe to assume similar rules would apply to the World Cup.  

Regardless, the group behind the challenge is going as far as to offer to pay for the legal and travel expenses for the wannabe pitch invader. This also suggests that the group knows what it’s encouraging is likely to break the law or at the very least match rules. 

The first games of the tournament are slated to take place in Mexico, followed by two matches in Toronto and then Los Angeles the next day. 

Memecoin ‘cult’ isn’t shy of deplorable stunts

This isn’t the first time this memecoin group has encouraged controversial stunts. Last May, it hosted a $1 million competition to generate viral content based around its token.

This encouraged two men to trespass into the enclosure belonging to Punch, a macaque monkey that went viral along with his IKEA plushie. 

When the stunt was announced, the creators said, “We want to remind everyone to respect local laws and never put yourselves, others, or any animals at risk.”

Read more: Over 50% of Pump Fun token traders lost money this month, report

The project has also posted bounties on Pump Fun that offer $3,520 to set a car on fire while dressed as their mascot, and $14,082 to beat a mascot-themed marathon world record. 

Many users on X have noted that the Pump Fun bounty program is “dangerous,” compared it to the dystopian TV show Black Mirror, and warned, “There’s zero way this ends well.”

Even Epic Games founder and CEO Tim Sweeney posted, “What could possibly go wrong.”

Read more: ‘Crypto Robin Hood’ faked prison for clout, rugged memecoins for Palestine

After the World Cup skydiving bounty was removed, the next highest bounty of $23,504 asks users to interview the family of Henry Nowak’s killer, or one of the officers present during his arrest. 

Footage of the British teenager’s death has sparked political debate and protests across the UK, despite his parents asking people not to use his murder “to create further division, hatred or tension.”

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Key Takeaways

• Merlin (MRLN) shares climbed approximately 32% on Friday following successful completion of the Critical Design Review (CDR) for its C-130J autonomous aircraft program with U.S. Special Operations Command
• Completing the CDR confirms the system’s design readiness and transitions the program from development to aircraft integration phase
• The company will now begin a structured testing campaign that includes comprehensive aircraft-level evaluations
• This work is conducted under an IDIQ contract aimed at decreasing pilot workload throughout all flight stages
• Merlin’s artificial intelligence-driven autonomy platform operates on Lockheed Martin C-130J aircraft, with possibilities for broader platform adoption

Shares of Merlin, Inc. (MRLN) were changing hands at approximately $9.54 during Friday’s morning session, marking a surge of roughly 32.7% for the trading day. The rally followed the company’s announcement that it successfully passed the Critical Design Review (CDR) milestone for its C-130J autonomous flight program in partnership with the U.S. Special Operations Command (USSOCOM).

Merlin, Inc., MRLN

Prior to the market opening bell, the stock had already climbed approximately 29.5% during pre-market hours.

The CDR represents a significant technical checkpoint. Passing this review verifies that the system design meets requirements and authorizes progression to subsequent development stages.

Following this successful review, Merlin advances from design development into aircraft integration operations. The program will subsequently enter a structured testing phase incorporating full aircraft-level evaluations.

This initiative operates under an indefinite-delivery, indefinite-quantity (IDIQ) contract that USSOCOM previously granted to Merlin. The primary objective centers on minimizing crew workload during every flight phase.

CEO Matt George highlighted the significance of reaching this milestone. “Completing the Critical Design Review validates the architecture we’ve built for safe, scalable autonomy on large aircraft like the C-130J,” George stated. “As we move into integration, ground testing, and eventually flight demonstrations, we’re focused on proving autonomy from takeoff to touchdown.”

Understanding the Technology

Merlin’s artificial intelligence-driven autonomy platform functions aboard Lockheed Martin (LMT) C-130J aircraft operated by USSOCOM. The company positions itself as a provider of cockpit autonomy solutions.

The program encompasses potential expansion opportunities—extending to additional Department of Defense aircraft platforms as well as commercial aviation applications. While these expansion paths haven’t been officially announced, they represent possibilities within the existing contract framework.

Technical Analysis of the Stock

Friday’s rally propelled MRLN above its 50-day simple moving average ($9.29) for the first time in recent weeks, positioning shares 31.7% higher than the 20-day SMA ($7.44).

However, the longer-term technical outlook remains challenging. The stock continues trading 37% beneath its 100-day SMA and approximately 50% under its 200-day SMA. The broader moving average configuration remains in bearish territory.

The 52-week peak occurred in April around $17.00. A subsequent decline in May drove shares to a 52-week bottom of $5.78. While Friday’s movement represents a substantial recovery, the stock remains significantly below previous highs.

MACD indicators reveal strengthening momentum—the indicator trades above its signal line with a positive histogram reading—indicating accelerating buying interest from recent lows.

A critical support zone to monitor sits at $8.50, representing a nearby pivot point just beneath the 50-day moving average region.

As of publication time, MRLN is trading at $9.54, representing a 32.73% gain for the session.

CoinDesk Indices presents its daily market update, highlighting the performance of leaders and laggards in the CoinDesk 20 Index.

The CoinDesk 20 is currently trading at 1681.25, down 4.8% (-84.48) since 4 p.m. ET on Thursday.

All 20 assets are trading lower.

Leaders: BTC (-2.8%) and BNB (-2.9%).

Laggards: ICP (-14.6%) and NEAR (-14.3%).

The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally.

Key Highlights

• FFAI shares recover following healthcare sector robot introduction

• Master humanoid robot deployed at Los Angeles dental facility

• Pre-market trading shows upward movement for FFAI following robot announcement

• Company expands embodied AI ambitions with dental practice implementation

• Healthcare deployment represents milestone in Faraday’s robotics expansion

Shares of Faraday Future Intelligent Electric Inc. (FFAI) moved forward in its embodied artificial intelligence initiative following the installation of its Master humanoid robot at a dental practice in Los Angeles. This deployment represents the company’s inaugural healthcare application for its EAI technology. At the same time, FFAI stock experienced a modest recovery during pre-market hours after declining in the prior trading session.

Healthcare Sector Welcomes Faraday’s Master Robot

Faraday Future completed the installation of its Master humanoid robot at Wonderful Life Dental Group’s Los Angeles location. According to the company, the robot will assist with administrative functions at the dental facility’s front desk. Its responsibilities will include handling patient arrivals, locating scheduled appointments, supporting reception operations, and providing directional assistance.

The company clarified that the robot will not participate in clinical operations or medical treatments at this stage. As such, this initial implementation concentrates on administrative operations rather than patient care activities. This approach maintains the robot’s function within office management and patient service domains.

Faraday Future characterized this installation as its inaugural practical healthcare application for EAI robotics. The company further connected this achievement to its broader expansion across service-oriented environments. Beyond the medical field, it pursues applications in educational institutions, hospitality venues, entertainment, security operations, inspection tasks, and directional services.

Master Robot Advances Faraday’s Embodied AI Vision

According to Faraday Future, Master possesses the capability to interact in over 50 languages. This functionality benefits medical facilities serving diverse patient populations. Consequently, the company anticipates the robot will enhance accessibility and streamline front-desk operations.

Dr. Jack Y. Pai, who owns Wonderful Life Dental Group, expressed interest in incorporating innovative technology into the practice. He indicated the robot could assist with patient navigation and minimize operational bottlenecks. He characterized Master as an intelligent support system for both staff members and patient engagement.

Faraday Future indicated this installation advances its comprehensive multi-format EAI robotics strategy. The company maintains ongoing development of humanoid and bionic robots designed for practical applications. Its objective is to align each robotic configuration with the most suitable commercial environment.

FFAI Stock Shows Recovery Following Previous Day’s Drop

FFAI concluded the previous session at $0.3332, declining 2.57%, before climbing during pre-market hours. The stock subsequently reached $0.3357, gaining 0.75%, reflecting moderate investor interest. Nevertheless, the increase remained limited following the previous day’s retreat.

Faraday Future Intelligent Electric Inc., FFAI

The stock movement occurred as Faraday Future emphasized initial interest in EAI robot installations. The company indicated this delivery strengthens its conviction in its distribution objectives. It aims for 200 units during the initial delivery phase and 1,500 units throughout the complete fiscal year.

Faraday Future originated as an electric automobile manufacturer but currently advocates for an expanded EAI platform. The organization has broadened its scope beyond automotive production into robotics technology. Therefore, the dental facility introduction provides FFAI with a notable operational achievement in its EAI expansion.

Key Takeaways

• Starting October 1, CVS Caremark will include Lilly’s Zepbound in its coverage, while the oral GLP-1 medication Foundayo gains coverage beginning June 1, marking a reversal of last year’s exclusion policy.
• With this change, Lilly’s complete obesity treatment lineup now enjoys coverage from all three major U.S. pharmacy benefit managers: Optum Rx, Express Scripts, and Caremark.
• Last year, CVS had chosen Novo Nordisk’s Wegovy as its exclusive preferred GLP-1 option, a decision that contributed to an almost 12% drop in LLY shares.
• During Q1 2026, Lilly reported revenues of $19.8 billion, representing a 56% increase year-over-year, while adjusted earnings per share reached $8.55, climbing 156%.
• Following the CVS announcement, LLY shares jumped approximately 4%, bringing the stock to within 5% of its record high.

On May 28, Eli Lilly achieved a significant breakthrough when CVS Caremark announced it would reverse its previous stance on Zepbound coverage. The pharmacy benefit manager confirmed that Zepbound will join its formulary effective October 1, while coverage for Foundayo, Lilly’s oral GLP-1 medication, begins June 1.

Eli Lilly and Company, LLY

A little more than twelve months ago, CVS took the opposite approach. The company entered an agreement with Novo Nordisk that positioned Wegovy as the exclusive preferred GLP-1 option while simultaneously removing Zepbound from covered medications. That announcement, coupled with weaker-than-expected quarterly results from Lilly, triggered an almost 12% decline in LLY shares.

The recent announcement represents a complete reversal. According to a CVS representative, employees whose health plans include obesity-related GLP-1 coverage will now receive equivalent access to both Novo and Lilly medications with identical co-payment structures.

Shares of LLY rose roughly 4% during trading on the announcement date.

Complete PBM Coverage Achieved

Following Caremark’s policy shift, Lilly has achieved comprehensive coverage across America’s three dominant pharmacy benefit managers — Cigna’s Express Scripts, UnitedHealth’s Optum Rx, and CVS Caremark — for its entire approved obesity medication range.

This development carries substantial weight. PBM formulary inclusion directly influences patient accessibility and determines the cost burden for individuals. Broader insurance coverage generally drives increased prescription demand.

The announcement holds particular significance for Foundayo. Lilly’s oral GLP-1 tablet only received FDA clearance in April, entering the market as a newer option. Novo’s oral alternative had already secured Caremark formulary placement several months prior. Achieving parity eliminates a competitive barrier that had been hindering Foundayo’s market penetration.

Data indicates approximately 80% of Foundayo users represent GLP-1-naive patients, indicating the oral formulation attracts a distinct demographic compared to injectable alternatives.

This coverage expansion also strengthens Lilly’s competitive position against telehealth providers distributing lower-cost compounded tirzepatide alternatives. Enhanced insurance accessibility improves the branded product’s price competitiveness.

Financial Metrics and Analyst Perspectives

LLY shares currently command a forward price-to-earnings ratio around 29x. This multiple appears elevated relative to the S&P 500’s approximately 21x and the healthcare sector’s 17x average. However, it represents a significant discount to Lilly’s three-year historical forward P/E average of roughly 43x.

Before the company released Q1 2026 results, LLY had declined nearly 21% year-to-date. Following the earnings announcement — which revealed a 56% revenue increase to $19.8 billion and adjusted EPS of $8.55, representing 156% annual growth — shares rebounded substantially. The stock currently trades less than 5% beneath its all-time peak, though it continues lagging the S&P 500’s year-to-date advance exceeding 10%.

Analyst consensus establishes a price target near $1,227 for LLY, suggesting approximately 15% potential appreciation from present levels. Price objectives revised following Q1 results average modestly higher at $1,239.

Barclays maintains the most optimistic outlook with a $1,400 target. Rothschild & Co Redburn presents the most conservative view at $900.

The forward P/E multiple has compressed from 32x when shares previously traded at comparable levels in February, indicating earnings projections have partially caught up with share price appreciation.

Republicans in the US House of Representatives are moving to add prediction market restrictions to a stalled congressional stock trading ban, as lawmakers scrutinize whether members of Congress should be allowed to wager on elections or public policy.

House Administration Committee Chair Bryan Steil plans to attach prediction market provisions to H.R. 7008, the House’s stalled stock trading ban bill, before it reaches the floor, Bloomberg Government reported Thursday.

Steil said he expects House leaders to schedule a vote on the measure, which would combine stock trading limits with new restrictions on lawmakers’ use of prediction markets.

The push comes amid growing scrutiny of prediction markets and renewed efforts to tighten rules on lawmakers’ financial trading.

No full ban on lawmakers’ prediction market use in Steil proposal

Steil’s proposal does not seek to ban prediction markets outright for members of Congress, but would restrict certain types of contracts lawmakers could trade. He said bets tied to sports or entertainment outcomes, such as the Super Bowl, would remain allowed, while contracts tied to elections or public policy would be limited.

Steil said the House still lacks clear rules for how members should engage with prediction markets.

“I don’t think this is a critique of the underlying product one way or the other,” Steil said.

Related: Polymarket users cry foul after Strategy sale market resolves to ‘no’

Politico says influencers promoted Polymarket after payments

According to a Friday report by Politico, influencers promoted Polymarket after receiving payments linked to the company’s chief marketing officer.

PayPal transaction records reviewed by Politico show at least $350,000 in payments routed through a personal account tied to CMO Matthew Modabber, alongside a broader flow of more than $2.5 million to hundreds of recipients over 14 months.

At least 20 creators later posted about Polymarket on X, often without disclosing financial ties, including figures such as Brian Krassenstein and Riley Gaines.

Cointelegraph reached out to Polymarket for comment on the promotions but had not received a response by publication.

Source: Brian Krassenstein

Polymarket attracted attention in 2024 after users successfully bet on Donald Trump’s election victory, reinforcing claims that prediction markets can reflect political outcomes in real time.

Prediction markets have also faced regulatory pushback in multiple jurisdictions over election-related contracts, gambling concerns and alleged insider-style trading.

Magazine: Should users be allowed to bet on war and death in prediction markets?

• Hayes exited ZEC after an Orchard privacy bug raised supply doubts.
• He also liquidated HYPE and NEAR while rotating his portfolio.
• The Zcash flaw was patched, but future exploitation cannot be ruled out.

Arthur Hayes, co-founder of BitMEX, has fully exited his positions in Zcash (ZEC), Hyperliquid (HYPE), and NEAR Protocol (NEAR).

The decision comes at a time when the crypto market is still digesting the implications of a flaw found in the Orchard shielded pool, a core component of Zcash’s privacy system.

The move has drawn attention across the digital asset space, not only because of Hayes’ profile as a macro investor, but also due to the nature of the vulnerability, which raised questions about the integrity of ZEC’s supply mechanics inside its shielded environment.

Orchard vulnerability triggers uncertainty in Zcash

The trigger for the sell-off was a vulnerability discovered in the Orchard shielded pool, which is designed to enable private transactions on the Zcash network using zero-knowledge proofs.

The issue raised concerns that, under certain conditions, it may have been theoretically possible to create counterfeit ZEC within the shielded system without immediate detection.

While Zcash developers moved quickly to deploy an emergency patch, the core concern was not just the existence of the bug itself, but the inability to verify whether it had ever been exploited before it was fixed.

Because shielded transactions are designed to be private, there is no straightforward way to retroactively audit all activity in a way that could definitively rule out past abuse.

Market reaction was immediate and sharp.

ZEC experienced a heavy sell-off, with its price falling by over 45% during the height of the reaction.

Liquidity thinned quickly as traders rushed to reduce exposure to an asset suddenly carrying uncertainty around its supply integrity.

The incident reignited a long-running debate around privacy-focused blockchain systems.

While zero-knowledge proofs are widely regarded as one of the strongest cryptographic tools available for privacy, they also introduce complexity that can make historical verification of state changes significantly more difficult compared to transparent blockchains.

Arthur Hayes exits ZEC, HYPE, and NEAR positions

Against this backdrop, Arthur Hayes confirmed that he had fully liquidated his ZEC holdings.

Hayes also closed positions in HYPE and NEAR, signaling a broader portfolio adjustment rather than a single-asset reaction.

Hayes described the situation in blunt terms, stating that what he previously referred to as his “Holy Trinity” thesis no longer held.

The key issue for Hayes was not confirmed exploitation. Instead, it was the presence of unresolved uncertainty.

Even with a patch in place, the inability to definitively prove whether counterfeit issuance had occurred prior to the fix created a level of risk he was no longer willing to carry in a privacy asset.

The Holy Trinity is dead. Sadly due to the Orchard Pool exploit, I had to dump our entire $ZEC bag.
– While I think it’s extremely unlikely of any minting, it cannot be formally cryptographically proved impossible
– The privacy from AI, govt, big tech narrative demands perfection…

— Arthur Hayes (@CryptoHayes) June 5, 2026

Alongside the ZEC exit, Hayes also liquidated positions in HYPE and NEAR.

While no direct technical link was identified between those assets and the Zcash vulnerability, the simultaneous sell-off suggests a broader repositioning of capital rather than an isolated reaction.

Key Highlights

• Jensen Huang, CEO of NVIDIA, has validated Samsung, SK Hynix, and Micron as certified suppliers of HBM4 memory for the upcoming Vera Rubin AI accelerator system.
• The Vera Rubin platform has commenced full-scale production and is scheduled for commercial delivery in the third quarter of 2026, offering a tenfold increase in agent throughput versus Grace Blackwell.
• Industry analysts project SK Hynix will capture between 60% and 70% of the HBM4 supply volume for Vera Rubin, while Samsung secures 25–30%, leaving Micron with the balance.
• Micron shares fell 7.7% on June 5 despite the certification announcement, weighed down by tech sector pressure following robust employment data and Broadcom’s quarterly results.
• The certification disclosure came during Huang’s visit to South Korea, where he conducted strategic discussions with executives from SK, Samsung, LG, Hyundai, and Naver regarding supply chains and AI collaboration.

On June 5, 2026, NVIDIA’s CEO Jensen Huang publicly validated that the three leading memory chip manufacturers—Samsung, SK Hynix, and Micron—have successfully completed the qualification process to provide HBM4 high-bandwidth memory for the company’s Vera Rubin artificial intelligence accelerator system.

NVIDIA Corporation, NVDA

NVDA shares reached $218.66, posting a 1.82% gain for the session, while Micron (MU) experienced a 7.74% decline.

Upon his arrival in Seoul, Huang addressed the media, stating: “All three vendors have been qualified. All three vendors are in production, and they’re all racing to support Vera Rubin.”

Vera Rubin represents the next evolution beyond NVIDIA’s Grace Blackwell GPU platform. The system transitioned to full production status after Huang’s presentation at GTC Taipei on June 1, 2026, and the company reports it achieves a tenfold improvement in agent throughput relative to Grace Blackwell.

“Agentic AI is a new kind of workload,” Huang explained. “One prompt can launch a thousand-step journey of reasoning, retrieval, tool use and response generation. Vera Rubin was built for this moment.”

Shipments of the innovative platform are projected to commence during Q3 2026. Every Vera Rubin server configuration combines NVIDIA’s Vera central processors with Rubin graphics processing units and terabytes of HBM4 memory technology.

This announcement represents Huang’s first public validation that all three memory providers have successfully met certification requirements for the new system, putting to rest months of industry conjecture about the supply chain.

Projected Distribution of HBM4 Supply Volume

Although NVIDIA has not released official volume distribution figures, industry supply-chain experts predict SK Hynix will command approximately 60–70% of the HBM4 memory supply for Vera Rubin. Samsung is anticipated to capture around 25–30% of the allocation, while Micron will fulfill the remaining portion.

SK Hynix initiated the qualification pipeline ahead of its competitors. Samsung launched HBM4 volume production in February 2026. On June 2, Huang publicly encouraged SK Hynix to accelerate its production capacity, emphasizing that worldwide semiconductor availability continues to face constraints.

NVIDIA is simultaneously establishing a fresh research and development facility in South Korea and is currently hiring personnel for the operation.

Micron Stock Declines Despite Qualification Approval

The favorable supply chain development failed to support Micron shares. MU declined 7.74% on June 5, pressured by widespread technology sector weakness that followed a hotter-than-anticipated U.S. employment report, which unsettled interest-rate-sensitive technology holdings.

The share price decline also coincided with Broadcom’s quarterly earnings announcement on Wednesday evening, which seemed to cool enthusiasm across the artificial intelligence sector.

Throughout his Seoul trip, Huang conducted meetings with chairpersons from SK Group, Samsung, LG Group, Hyundai Motor Group, and Naver to address supply expansion commitments and physical AI strategic alliances.

NVIDIA has confirmed that meetings are arranged with all principal South Korean technology and industrial conglomerates as the company advances plans to expand Vera Rubin implementation worldwide.