Zcash (ZEC) has faced fresh scrutiny after a patched Orchard Pool vulnerability sparked a dispute over whether the privacy coin’s users and investors still face hidden risks. Summary Zcash faces fresh scrutiny after developers patched a critical Orchard Pool vulnerability. Dragonfly partner Haseeb Qureshi said the market may be overstating the immediate risks. Qureshi argued that counterfeit ZEC would likely remain limited to the shielded pool. Dragonfly partner Haseeb Qureshi said the market may be treating the bug as a larger immediate threat than the available evidence supports. He also said Dragonfly continues to hold ZEC, even as developers, investors, and privacy advocates debate what the flaw could have allowed before it was fixed. Qureshi says ZEC fears look overstated According to Qureshi, the critical issue was not whether the vulnerability was serious, but where its impact would likely have stayed. He said the bug could have allowed someone to create counterfeit ZEC inside the Orchard shielded pool, but he argued that those coins would face a major obstacle once an attacker tried to sell them. In Qureshi’s view, an attacker would eventually need to move counterfeit shielded ZEC into transparent ZEC before using major exchanges. Since transparent ZEC can be checked against the public supply, he said any attempt to move inflated amounts into visible circulation would be easier for the network to catch. For that reason, Qureshi said regular exchange users and many traders likely had limited direct exposure. He placed the largest risk on users who kept funds inside the shielded pool while the vulnerability existed. There’s a lot of confusion about the recently patched Zcash bug. Here’s how to actually understand it.If the bug had been exploited before the patch (very unlikely it was), it would have looked like the shielded pool getting drained. Whoever minted the counterfeit shielded ZEC… https://t.co/h0494uf4VP— Haseeb ＞|＜ (@hosseeb) June 5, 2026 Qureshi also cited recent Zcash network data to support his argument. He said the shielded pool’s share of supply fell from 31% to 30% over 48 hours after the disclosure. To Qureshi, that small drop did not show a rush by privacy-focused users to leave the pool. He described the move as modest rather than a sign of panic, while still acknowledging that the bug created a serious debate around Zcash’s private transaction system. Wei Dai warns attack could be harder to trace Meanwhile, Zcash creator Wei Dai argued that a successful attacker may not have needed to empty the Orchard Pool. Dai said a careful attacker could have kept fake ZEC inside the shielded environment and moved it slowly through private transfers. The game theory of “exploiting” the Zcash bug is much more complex.”If the Zcash bug were exploited, we would have seen a large outflow from the Orchard pool.”No, it’s not that simple.A sophisticated hacker would not have just withdrawn from the shielded pool and sold…— Wei Dai (@_weidai) June 5, 2026 Under that scenario, Dai said the pool itself could have helped hide the movement of counterfeit coins. He also raised another possible risk. If someone discovered the flaw early, Dai said that person could have opened a large short position against ZEC before the bug became public. Because ZEC trades on liquid perpetual futures markets, Dai argued that a trader could have profited from the later price reaction without leaving clear on-chain evidence of the original exploit.
