PancakeSwap

Polyhedra Network

when

Spot

Following the flash crash of the ZKJ token, which lost over 85% of its value in just one day on June 15, 2025, Polyhedra Network has published its preliminary assessment report on the incident.
According to the report, the collapse was caused by coordinated on-chain liquidity attacks, Wintermute’s large transfers of tokens to centralized exchanges (CEX), and the liquidation of leveraged positions in the process.
It is stated that planned moves towards liquidity pools on PancakeSwap played a major role in the collapse of the ZKJ/KOGE pair. According to the report, six different addresses withdrew a total of millions of dollars in liquidity and then carried out aggressive ZKJ sales:
<ul>
 <li>0x1A29…599: Sold 1.57 million ZKJ, withdrawing approximately $4.3 million worth of LP tokens.</li>
 <li>0x0781…dE7: Converted KOGE to ZKJ and sold 1 million ZKJ, making a $3.45 million transaction.</li>
 <li>0x6aD3…EBb: He bought 772 thousand ZKJ from the address above and sold it in 8 minutes.</li>
</ul>
Other addresses sold a total of 1.8 million ZKJ in the same minute.
This attack directed selling pressure to the deeper liquid ZKJ/USDT pair rather than the low USDT liquid KOGE/USDT pair. The concentrated liquidity structure in PancakeSwap V3 also caused a significant loss of depth when the price was out of range, accelerating the price decline.
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Before the crash, ZKJ/KOGE had become a popular pair for Binance Alpha farming campaigns. However, after Binance changed its points system in early June, the rewards for such trades decreased and liquidity support began to weaken.
In an attempt to stop the decline, the Polyhedra Network team provided liquidity of around $30 million in stablecoins such as USDT, USDC, and BNB via DEX market makers on PancakeSwap. However, due to the falling prices, all these tokens were automatically converted to ZKJ, which was insufficient to alleviate the selling pressure.
Especially on exchanges like Bybit, leveraged positions that were opened with the decrease in spot prices were liquidated one after another. A total of $94 million worth of long positions were forcibly closed between 15:00 and 17:00. At least six major liquidation events exceeding $1 million each occurred around 15:57 UTC alone.
Wintermute, one of the leading market makers, made remarkable moves during the crash. The company’s address transferred a total of 3.39 million ZKJ to central exchange addresses between 15:45 and 17:14 on June 15. During this period, the ZKJ price fell from $1.92 to $0.29. Wintermute’s wallet balance on Ethereum fell from 3.41 million ZKJ to 22,688 ZKJ.
Polyhedra Network announced that these events are still in the preliminary evaluation phase, detailed analysis of all movements on the chain is ongoing, and the report will be updated in the coming days.
*This is not investment advice.
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Developers Reveal Reason Behind 85% Drop in Altcoin Price – Alleges Being Attacked

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