One day after ZKJ, the token of Polyhedra Network, lost over 80% of its value in a sudden crash, the team has published its first detailed report on what happened. The post-mortem outlines coordinated on-chain sell-offs, large-scale centralized exchange liquidations, and significant token movements by Wintermute. But perhaps most notably, Polyhedra’s co-founder is now openly accusing KOGE of playing a direct role in the collapse. And he isn’t being subtle about it.
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Sharp Drop, Fast Response
ZKJ dropped from around $1.90 to below $0.30 on June 15 in under an hour. At the same time, KOGE fell nearly 60%, sparking immediate concern among holders of both tokens. Binance responded by confirming that “large holders removing on-chain liquidity” and “a liquidation cascade” triggered the events. Changes to Alpha Points rules were announced shortly after:
Polyhedra’s post-mortem now provides a much deeper view into what happened. According to the team, several wallets rapidly removed liquidity from the ZKJ/KOGE trading pair on PancakeSwap and dumped millions in ZKJ across the open market. These moves took place in tightly timed sequences and were followed by wallet-to-wallet transfers and more dumps.
The report strongly implies the events were coordinated and aimed at exploiting the pool’s thin structure. Meanwhile, KOGE’s lack of USDT liquidity shifted the sell pressure onto ZKJ, exacerbating the situation further.
Liquidations and Wintermute Deposits
The post-mortem also confirms what many suspected: the crash triggered a derivatives liquidation cascade across centralized exchanges. From 12:00 to 14:00 UTC on the day of the incident, over $94 million in long ZKJ positions were liquidated – including several individual liquidations above $1 million. These forced sells poured additional pressure onto an already spiraling market.
Compounding matters, a wallet linked to Wintermute deposited more than 3.3 million ZKJ to exchanges during the same time window. The address’s ZKJ holdings dropped from over 3.4 million to just 22,000 within 90 minutes. The report does not accuse Wintermute of direct involvement in the crash, but the timing is difficult to ignore.
Polyhedra Says It Wasn’t Them
The team insists it took no part in selling ZKJ. Instead, Polyhedra claims it actively provided liquidity – deploying roughly $30 million worth of USDT, BNB, and USDC through DEX market makers in an effort to support price action.
As the report explains, these funds were consumed by sell pressure and converted into ZKJ during the cascade. While the effort may have limited the damage, it clearly wasn’t enough to stabilize the token – which remains more than 75% below its pre-crash level.
Accusations Against KOGE
What sets this case apart is the direct callout issued by Polyhedra’s co-founder shortly after the report went public. In a strongly worded post on X (formerly Twitter), he wrote:
Another follow-up post acknowledged ongoing criticism of Polyhedra, but framed the crash as an opportunity to rebuild. These posts weren’t left hanging – Polyhedra’s official account reposted them, giving the accusations institutional weight.
The implication is clear: Polyhedra believes KOGE or its backers played a key role in the crash, either through direct liquidity withdrawal or through enabling the sell-off structure that caused the cascade.
Context: KOGE’s Silence and Controversial Tweet
One day before the crash, 48 Club – the project behind KOGE – posted a message reminding users that KOGE was “fully diluted from day one” and that they had never promised not to sell:
While not a direct admission of any involvement, the message has aged poorly, given the timing and the market’s reaction. Following the crash, 48 Club posted only a trading competition announcement and a governance proposal suggesting the club buy back KOGE “near net asset value”. No statement addressing the crash or Polyhedra’s accusations has been issued.
Price Update: One Recovery, One Doesn’t
Since the post-mortem, ZKJ has rebounded nearly 40%, suggesting some degree of investor confidence in Polyhedra’s explanation and handling of the fallout. Still, the token remains far below its pre-crash value.
KOGE, on the other hand, has struggled. It saw a mild 10% recovery but is still trading over 50% below its previous levels. Without a formal statement or a visible effort to address concerns, market sentiment around the token remains fragile.
What Happens Next?
Polyhedra has promised further investigation, and this initial report appears to be only part of what the team plans to publish. Whether they will go further in naming actors – or pursuing any form of legal or reputational redress – remains to be seen.
For now, what’s clear is that this wasn’t just a case of market volatility or simple mismanagement. Coordinated activity, asymmetrical liquidity, and pointed accusations have made the ZKJ crash – and the surrounding events – one of the most complex breakdowns in the Alpha ecosystem so far.
