Wu Blockchain reports that the yield protocol PiggyBank has released a post-mortem report on the LAB incident. According to the report, the LAB basis trade they previously established was forced to close due to prolonged extreme negative funding rates, resulting in a loss of approximately $476,400 and causing a net value drawdown of about $578,900 on June 6. PiggyBank stated that the spot price of LAB remained higher than the perpetual contract price for an extended period, leading to funding rates reaching an annualized -17,000%, making the cost of short hedging unsustainable. The locked LAB holdings are currently valued at approximately $1 million based on market price, but since they are not yet unlocked and lack hedging, they have not been included in the net value. The team plans to gradually sell these holdings between August 14 and October 14, 2026. The project team also announced plans to gradually exit basis trading and funding rate arbitrage strategies. They intend to use future proceeds from LAB sales and platform revenue to compensate affected users. https://(wublock123.com)/news/piggybank-lab-incident-loss-details-user-compensation-plan-62571