Full analysis of the ZKJ big dump event, the crypto market sounds the liquidity alarm again.

On June 15, 2025, at 20:30, the native token ZKJ of Polyhedra Network experienced a shocking scene. The price plummeted from $1.946 to a low of $0.3767 within two hours, a drop of 80.64%. At the same time, another popular token KOGE on Binance Alpha platform also collapsed, dropping from $61 to $8.46.

The flash crash quickly triggered a chain reaction. Coinglass data shows that the total liquidation amount across the network that night reached 102 million USD, with the ZKJ token alone contributing 94.36 million USD in liquidation volume, forming a typical bull trap.

##Liquidity Withdrawal, the Trigger for the Crash On-chain data reveals the intricate operations behind the crash. According to blockchain analytics firm Lookonchain, six whale wallets sold 5.23 million ZKJ just before the collapse, worth approximately 9.66 million dollars.

The operational process presents clear strategic steps:

• The key address (starting with 0x1A2) withdrew liquidity worth 3.76 million USD KOGE and 532,000 USD ZKJ within 5 minutes.
• Exchange 45470 KOGE for ZKJ, then sell 1.573 million ZKJ in batches.
• Clearly defined goals: first attack the liquidity weaker KOGE, then shift to ZKJ for double harvesting.

The interconnection of liquidity pools accelerates the death spiral. When the USDT in the KOGE/USDT pool is exhausted, liquidity providers are forced to exchange KOGE for ZKJ, further exacerbating the selling pressure on ZKJ. This design flaw makes the two tokens a community of shared fate.

"KOGE has been fully released from day one, with no lock-up. 48Club has never committed to not selling treasury holdings," the KOGE team stated when the price first showed volatility, which was later interpreted as a warning of collapse.

##Token Unlocking and Regulatory Adjustments, Adding Insult to Injury The token release plan has become another straw that breaks the market. On June 15, Polyhedra Network released 15.53 million ZKJ tokens, accounting for 1.55% of the total supply. More critically, the unlocking of 5.3% of the tokens, worth approximately 32 million dollars, is scheduled for June 19. In an environment of liquidity exhaustion, the newly added tokens directly translate into selling pressure.

The sudden change in the regulatory environment accelerated the outbreak of the crisis. On the day of the crash, Binance announced adjustments to the calculation rules for Alpha Points:

• From June 17th, 0:00 UTC, trading between Alpha tokens will no longer count towards points.
• The new regulations directly target trading pairs like ZKJ/KOGE that involve wash trading.
• The withdrawal of part of the arbitrage funds in advance has become the last straw that broke the liquidity.

"To maintain market fairness and stability, and to reduce systemic risks from concentration," Binance explained the motivation behind the policy adjustment in the announcement. However, this statement unexpectedly became a catalyst for the collapse.

##Binance Alpha Mechanism, a Timed Bomb Under the Illusion of Prosperity The rise of ZKJ and KOGE is closely related to the Binance Alpha ecosystem. As the two tokens with the largest trading volume on the BSC chain of Binance Alpha, their trading volume once accounted for 85.10% of the total trading volume.

Behind its high liquidity is the stimulation of the Alpha Points reward mechanism:

• Users earn points through trading to exchange for airdrop rewards
• The ZKJ/KOGE trading pair has become the top choice for score manipulation due to its low wear rate.
• The combined liquidity pool TVL once broke through 30 million USD.

The points economy masks the fragility of real value. As the number of participants surges, the returns plummet sharply:

• To receive the airdrop at the beginning of June, 45 points are required. On June 13, the threshold for the new project ROAM increased to 247 points.
• User order number revenue dropped from 70-100 dollars to only 15 dollars.
• It directly caused the trading volume to plummet from the peak of 2 billion dollars on June 8 to less than 1 billion dollars.

When the income from points cannot cover the risks, savvy large investors choose to withdraw their investments, leaving retail investors to bear the consequences of the crash.

##Market Aftershocks, Trust Crisis, and Regulatory Warnings The wealth evaporation caused by the flash crash is shocking. Taking an investment of 1000 dollars as an example, users who panic sold lost an average of about 800 dollars, far exceeding the benefits from 10 Binance Alpha airdrops. Some users had a principal of 5000 dollars that was reduced to less than 500 dollars after the flash crash. Even more brutally, six traders were each liquidated for over 1 million dollars.

Polyhedra Network's crisis management failed to calm the public anger. The team stated on platform X that "the technology and community fundamentals remain robust," attributing the plunge to "abnormal on-chain transactions." However, the community is not buying it, and the label "rugged from both sides" quickly spread on social media.

Market technical indicators suggest a difficult recovery. As of June 16:

• The trading price of ZKJ is hovering between $0.33 and $0.40.
• Daily trading volume decreased by 61% to $1.23 billion
• Compared to the historical high of 9.56 USD on March 2024, it has still fallen by 96%.

Analysts warn of a potential "dead cat bounce" followed by continued decline. The road to recovery for ZKJ is fraught with difficulties. The aftermath of the flash crash is still spreading. On June 19, the ZKJ token unlock date, the ZKJ price is still hovering at a low of $0.40, shrinking 96% from its historical high. The world of cryptocurrency is never short of the brilliance of technological innovation, but when liquidity becomes a manipulable weapon, ordinary investors are always at the forefront of the storm.

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