PiggyBank: LAB token basis trading error, token manipulated by the market, USDC vault has already retraced 15%.

According to Mars Finance, yield protocol PiggyBank issued a statement acknowledging a serious error in its LAB token basis trading last month. PiggyBank disclosed that its team had previously purchased and locked up approximately $100,000 (about 2% of the portfolio) of LAB tokens at a low price through OTC channels, while simultaneously short perpetual contracts for hedging. However, during the holding period, LAB experienced severe market manipulation, liquidity dried up, and funding rates were deeply negative, resulting in excessively high hedging costs. The team ultimately chose to close the short position to limit downside risk. At current prices, the total value of the locked LAB position is $1.35 million. However, due to insufficient liquidity, PiggyBank will exclude it from net asset value calculations before its initial unlock on August 14th. While the situation is still evolving and could potentially yield substantial returns, this is the "fairest and most transparent" way for users to manage liquidity. Therefore, today's net asset value will show a decline of approximately 15% in USDC Vault, approximately 12% in SPYx, and approximately 9% in JitoSOL. A detailed report, including follow-up measures, will be released next week. On-chain investigator ZachXBT previously publicly questioned PiggyBank, accusing it of insider control of over 95% of the supply.