The Professor (LAB)

Piggy Bank, discloses LAB trade manipulation loss... compensation for affected users planned.

https://t.co/sWk3pVNUjO https://t.co/x7PmjbuW5x

Wu said he learned that the yield protocol PiggyBank released a LAB incident recap report stating that its previously established LAB basis trade was forced to liquidate due to a prolonged extreme negative funding rate, ultimately resulting in a loss of about $476,400 and causing a net asset value drawdown of about $578,900 on June 6. PiggyBank explained that the LAB spot price has been consistently higher than the perpetual contract price, causing the funding rate to reach an annualized -17,000%, making the short hedge cost untenable. The related locked LAB position is currently valued at about $1,000,000 at market price, but because it has not been unlocked and lacks hedging, it has not yet been counted in net assets, and it is planned to be gradually sold from August 14, 2026 to October 14, 2026. The project team also said it will gradually exit basis trading and funding rate arbitrage strategies, and plans to compensate affected users using future LAB sale proceeds and platform revenue. https://t.co/hJJZNYTfwS

#LAB 🔥🔥 fell from $16 to $7 ..

We caught an approximate 52% drop with this pullback. https://t.co/RSbZqrUASp