Shielded Labs found a bug in Zcash's Orchard pool in late May that could have let someone mint counterfeit ZEC undetected. Analysts found no sign it was ever exploited.

Holders didn't leave privacy. They moved.

The new Ironwood pool went live on July 28. It now holds 4.23M ZEC, per ZecHub. Orchard fell from 3.77M to 324K.

~Total shielded supply: 4.38M ZEC on Jul 26, 4.99M now, 29.3% of all ZEC
~51.8% of the last 24h of transactions were shielded, 99% of those in Ironwood
~CoinGecko's privacy sector is $28.4B, and $ZEC + $XMR are about 99% of it
~Over a year ZEC is +65% and XMR +40%, while DCR, ZANO, ARRR and FIRO are down 63% to 80%

That's a pretty interesting reaction. A critical bug usually drains a pool. Here shielded supply grew 14% after it.

My read is privacy is now a two-coin sector, and on Zcash people use the privacy instead of just holding the ticker.

But I wouldn't read that into the price. ZEC is down 16% this week and 19.6% in 30 days, and much of the migration was forced, since Orchard stopped taking new funds.

Does shielded supply keep growing once the forced migration is done?