The most unsettling part of the $Zcash incident is that nobody knows the true damage.

Because the flaw existed inside Orchard's encrypted privacy pool, there's no way to audit the ledger and verify whether counterfeit $ZEC was secretly minted since 2022.

• The bug survived multiple audits.
• It was discovered by researcher Taylor Hornby using an AI-assisted approach.
• The Zcash team deployed an emergency hard fork to fix it.

The code is patched, but confidence took a major hit.

ZEC fell nearly 50% as investors reacted not to confirmed inflation, but to the possibility that hidden inflation may have occurred without anyone being able to prove it.

The vulnerability is gone. The uncertainty isn't.

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