Recent on-chain data shows an interesting phenomenon. A large holder who has been bearish on ZEC has been adding to their short positions since January 8. Currently, their position is as follows: short 5,000 ZEC with 2x leverage, corresponding to a position size of approximately $2.01 million, with an average entry price of $499.32.

The unrealized gains are indeed impressive, with a paper profit of $490,000. But the story isn't that simple. A review of this address's transaction history reveals that they have shorted ZEC seven times and have never taken a long position. Even more painfully, they have accumulated a total loss of $508,000.

It looks like a steadfast ZEC bear, but their execution hasn't been very smooth. Whether this position can turn losses into profits depends on how the market moves next.