ZKJ Increased Over 88% as Polyhedra Vows More Buybacks and Points Wintermute’s Crash-Time Deposits

Following the dramatic 83% plunge of Polyhedra Network’s ZKJ token on June 15, 2025 — the project’s official team has issued a detailed response.

The flash crash, which erased over $500 million in market value, has now prompted Polyhedra to defend its actions while promising further investigation into alleged market manipulation.

Meanwhile, ZKJ has shown signs of recovery, with its price surging from $0.38 to $0.71 between 8:00 PM UTC on June 16 and 12:00 AM UTC on June 17, marking a remarkable 88.84% increase.

Recap of the Incident

As reported yesterday, the ZKJ token’s value collapsed from approximately $1.93 to $0.29 within hours, driven by coordinated liquidity withdrawals from the PancakeSwap ZKJ/KOGE pool, aggressive sell-offs, and a $94 million liquidation cascade on CEXs like Bybit.

The incident coincided with a token unlock and changes to Binance’s Alpha points program, which had previously incentivized liquidity provision but left pools vulnerable.

Polyhedra’s Official Response

In a statement posted on X , Polyhedra Network outlined a preliminary report attributing the crash to a “coordinated liquidity attack.” The team detailed the following five key factors:

1. Coordinated Liquidity Attack and Token Dumping on PancakeSwap: Several wallets executed significant liquidity withdrawals from the PancakeSwap ZKJ/KOGE V3 pool. This aggressive sell-off triggered a cascade effect, removing critical market depth.

2. Liquidity Vulnerability from Binance Alpha Farming: The ZKJ/KOGE pair had been a popular choice for Binance Alpha farming, but rule changes in early June reduced rewards, weakening pool stability. The concentrated liquidity on PancakeSwap V3 amplified slippage and volatility, creating conditions for manipulation.

3. Polyhedra’s Liquidity Provision: Polyhedra’s DEX market makers deployed approximately $30 million in USDT, USDC, and BNB to provide liquidity and absorb sell pressure. These assets were converted into ZKJ during the crash, a move the team claims was for stabilization and is fully verifiable on-chain.

4. Cascading Liquidations on Centralized Exchanges: The spot market collapse led to leveraged ZKJ positions being liquidated on CEXs like Bybit, with over $94 million in long positions wiped out between 12:00–14:00 UTC on June 15. This triggered a self-reinforcing spiral of price drops and forced sell-offs.

5. Wintermute’s CEX Deposits as a Potential Exacerbating Factor: Wintermute deposited 3.39 million ZKJ into centralized exchanges during the crash, with transactions occurring between 12:45 and 14:14 UTC on June 15. Polyhedra highlighted this as a potential contributor to the volatility, though further investigation is underway.

Polyhedra Co-founder Calls Out KOGE Amid Liquidity Feud

Tiancheng Xie, a key figure and co-founder of Polyhedra Network, has taken a bold stance.

On X, Xie announced plans for a buyback to mitigate the damage, writing, “We will buy back more. Now we need to figure out the current situation and prevent future financial attacks,” signaling a proactive yet cautious approach. However, the absence of a specific timeline or buyback volume has left investors wary.

In other posts on X, he lashed out at KOGE, the paired token entangled in the liquidity crisis, accusing its team of a “rug pull” that devastated investors.

His frustration peaked in a later post, where he challenged the 48Club team behind KOGE, questioning their motives after being blocked on the platform. “You blocked me, so scared? What are you hiding?” Xie wrote, highlighting the lack of USDT liquidity in the KOGE/USDT pool and alleging that sell pressure was shifted to the ZKJ/USDT pair, a move he claims cost his team millions.

Despite the block, Xie reaffirmed Polyhedra’s resilience, stating, “Our tech is solid—attacks won’t stop us. Buybacks are coming, and we’re investigating the culprits. Stay tuned,” blending defiance with a call for accountability.

This escalation has amplified the controversy. The community on X is divided: some applaud Xie’s transparency and vow support, while others question the practicality of his promises without concrete action. KOGE’s continued silence, contrasted with Xie’s public confrontation, has fueled speculation of deeper issues, with investors eagerly awaiting Polyhedra’s next steps.

KOGE’s continued silence, contrasted with Xie’s public confrontation, has fueled speculation of deeper issues.

Wintermute and KOGE Stay Silent as Accusations Mount

Neither Wintermute nor KOGE has issued an official statement regarding the recent ZKJ token crash.

KOGE serves as the governance token for the BNB48 Club within the Binance ecosystem. A Binance Square account, seemingly linked to a KOGE team member, claimed that no one affiliated with the group had "dumped" the token or played a role in its price decline.

"After accusing $KOGE and Wintermute, only your worthless air project remains innocent," said 48ClubIan in a translated statement posted on Binance Square Monday.

ZKJ Bounces Back 88%, But Can the Rally Last?

Meanwhile, ZKJ has shown signs of recovery, with its price surging from $0.38 to $0.71 between 8:00 PM UTC on June 16 and 12:00 AM UTC on June 17, marking a remarkable 88.84% increase. This surge, potentially fueled by Polyhedra’s buyback hints and renewed market confidence, has sparked cautious optimism.

However, it is worth noting that despite this impressive rebound, ZKJ’s current price is still far from its pre-crash level of nearly $2, highlighting the challenges ahead for a full recovery. Trading volume remains volatile, and analysts caution that the recovery could be short-lived without sustained support.

As the situation unfolds, all eyes are on Polyhedra’s next moves and whether KOGE’s silence will prompt further scrutiny.