PiggyBank discloses details of losses from the LAB basis trading manipulation incident and will compensate affected users.

CoinFeed reported on June 11 that PiggyBank released a detailed report on the LAB incident on June 6, stating that the protocol experienced a net drawdown of approximately $579,000 on June 6, primarily due to market manipulation in a LAB token basis trade. In early May, PiggyBank purchased 142,800 locked LAB tokens (approximately $102,500) through an OTC intermediary and simultaneously opened a perpetual contract short position for hedging. However, market participants continuously maintained the spot price above the perpetual contract price, resulting in a deep negative funding rate (annualized -17,000%). The excessively high hedging costs forced the short position to be closed, resulting in a loss of approximately $476,000. The relevant locked LAB tokens currently have a spot value of approximately $1 million, but due to poor liquidity and lack of hedging, they have been excluded from NAV calculations.