Down 18%! LayerZero "linked" to the plunge, whales cut losses and exit

On-chain monitoring shows that the cross-chain protocol LayerZero was impacted by market sentiment due to the rsETH vulnerability incident, with its token ZRO dropping about 18% today, falling from $1.90 to $1.50.
What’s more worth noting is the movement of funds:
Polymarket address "greenrooibos" transferred approximately 978k ZRO (about $1.57 million) to exchanges in a short period, compared to $2.04 million two weeks ago when they withdrew, resulting in an unrealized loss of about $470k, a typical stop-loss exit.
From a market structure perspective, this decline is not entirely due to fundamental changes but rather "risk spillover"—when a security incident occurs, funds tend to withdraw from the related ecosystem first, even if the project itself is not the core issue.
In the crypto market, correlation is a risk amplifier. When one link has a problem, the entire chain is re-priced.
Truly mature investors don’t wait for risks to materialize before reacting; they start shrinking their exposure before sentiment spreads. The market is always volatile, but your bottom line must always remain clear.