PiggyBank announced that there was an error in LAB token basis trading last month. The team purchased locked LAB tokens through OTC channels for approximately $100000 and simultaneously shorted perpetual contracts for hedging. However, due to market manipulation leading to liquidity depletion and deep negative funding rates, hedging costs were too high. The team ultimately liquidated the short position to limit the risk. At current prices, the total value of LAB positions is approximately $1.35 million, but due to insufficient liquidity, PiggyBank will exclude it from net asset value calculations before the first unlocking on August 14th.
