A DeFi protocol’s attempt to hedge a volatile token has backfired sharply. PiggyBank closed a LAB hedge position after extreme price swings and deeply negative funding rates rendered the trade unworkable. The unwind, detailed in the original report, left vault net asset values nursing drawdowns of up to 15%. On-chain investigator ZachXBT immediately called the strategy into question, saying it put user funds at risk chasing a highly speculative asset.