PANews 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.

PiggyBank will undergo structural reforms: increasing the transparency of its on-chain mechanisms, making its strategy logic and fund allocation publicly verifiable, and gradually phasing out basis trading and funding rate arbitrage. Regarding compensation, affected users will receive USDC compensation based on their actual losses, with funding sources including NAV difference, future LAB sales (expected to unlock between August 14th and October 14th, currently valued at approximately $1 million), and 50% of future platform revenue. All users recorded in the June 6th snapshot are eligible for compensation.