Zcash founder Zooko disclosed details of the Orchard vulnerability this morning, which is more worth studying than the 30% drop in ZEC.

The vulnerability allows attackers to generate unlimited and undetectable counterfeit ZEC.
The fix has been completed, but the privacy features make it impossible to prove whether it was exploited earlier—this is the fundamental dilemma of privacy coins: you cannot verify supply integrity without sacrificing privacy.
The turnstile accounting upgrade proposed by Shielded Labs essentially introduces an auditable "threshold," performing accounting checks on all tokens coming from the Orchard pool.
This is equivalent to adding a semi-transparent ledger layer on top of the privacy layer— the tension between privacy and auditability is being voted on by the market.
ZEC's sharp decline is not just a negative signal for a single coin.
It exposes the structural contradictions in the entire privacy track between regulation and trust: if even flagship zero-knowledge proof projects cannot prove their innocence after a vulnerability, why would institutional funds allocate to privacy assets?
Counter-risk: if the turnstile plan is rejected by the community, Zcash could split; if accepted, it means the narrative of "absolute privacy" in privacy coins gives way to "controllable privacy"—the latter might be the compliant way out, but in the short term, it could shake the confidence of core believers.
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