ZKJ and KOGE Flash Crash: Anatomy of a Coordinated Attack on Binance Alpha
The cryptocurrency market witnessed one of its most devastating coordinated attacks when ZKJ and KOGE tokens crashed 83% and 56% respectively within hours. This wasn’t just another market downturn—it was a calculated assault on Binance Alpha participants that left retail investors counting massive losses.
The devastating price collapse of ZKJ and KOGE tokens – Source: Binance
What Happened: A Coordinated Attack Unfolds
On June 15, 2025, the cryptocurrency community woke up to chaos. ZKJ token plummeted from $1.98 to $0.25, while KOGE crashed from $62.81 to $8.48. This wasn’t random market volatility—blockchain analysis reveals three coordinated addresses executed a sophisticated liquidity harvesting operation.
The attack unfolded in precise stages. First, massive liquidity withdrawals created artificial scarcity. Then, coordinated selling pressure triggered cascade liquidations. Finally, panic selling from retail investors completed the devastation.
Sharp decline in Binance Alpha trading volumes – Source: Followin
The Mechanics of Market Manipulation
Three key addresses orchestrated this attack through coordinated actions:
Address 0x1A2 withdrew $3.76 million worth of KOGE and $532,000 worth of ZKJ liquidity. Within minutes, they systematically sold 45,470 KOGE tokens, creating immediate downward pressure.
Address 0x078 followed with $2.07 million KOGE and $1.38 million ZKJ liquidity withdrawals. Their selling spree pushed prices into freefall territory.
Address 0x6aD received 772,759 ZKJ tokens from the second address and immediately liquidated them, ensuring maximum market impact.
This coordinated approach exploited Binance Alpha’s narrow liquidity provider ranges. Once prices moved beyond these ranges, insufficient liquidity created the perfect storm for flash crashes.
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mpact of liquidity manipulation on token prices – Source: Bitget
Retail Investors Bear the Brunt
The human cost was staggering. According to Coinglass data, total network liquidations reached $215 million in 24 hours, with ZKJ alone accounting for $102 million in liquidations. Many retail investors lost 80% of their invested capital overnight.
The cruel irony? Monthly Binance Alpha rewards average just $1,500 per user. Participants who invested thousands to farm Alpha points saw their capital evaporate in hours, making their month-long efforts entirely worthless.
“The total airdrop value of all Binance Alpha projects combined doesn’t equal the market cap lost by ZKJ alone,” noted on-chain analyst AI Aunt.
Massive liquidations triggered by coordinated selling – Source: Crypto Briefing
Lessons for DeFi Participants
This incident exposes critical vulnerabilities in decentralized finance:
Liquidity Concentration Risk: When too many users depend on limited token pairs, manipulation becomes inevitable.
Points System Exploitation: Reward mechanisms can create artificial demand that sophisticated actors exploit.
Retail Investor Vulnerability: Small investors consistently bear the largest losses in coordinated attacks.
Analyzing liquidity pool concentration risks – Source: Binance
Following this disaster, Binance announced immediate changes to Alpha Points rules. Starting June 17, 2025, trading volume between Alpha tokens will no longer count toward point calculations.
The ZKJ and KOGE flash crash serves as a stark reminder: in cryptocurrency markets, retail investors often fund the “liquidity feast” that sophisticated actors enjoy. The question remains—how many more retail investors will replace those who’ve learned this expensive lesson?
