The LAB token plunged 77% in two hours on June 2, 2026, collapsing from $27.96 to approximately $6. That crash erased $6 billion in market value based on its 312 million circulating tokens. It followed a sharp 122% surge the day before after a buyback announcement.
The Two-Hour Collapse
On June 2, LAB's price freefalled within 120 minutes. Fully diluted market capitalization shrank from $28 billion to under $7 billion. Some on-chain trackers recorded a total loss of $9 billion, though the circulating supply drop alone accounted for $6 billion. The speed left little room for traders to react.
Infrastructure-Driven Selling
On-chain data revealed routers, proxy contracts, and settlement infrastructure fueled the crash—not retail or whale wallets. The largest single sell transaction was just $18,600. One proxy contract executed 4,585 trades in under two hours, dominating the volume. This pattern pointed to automated systems rather than human panic.
Previous Day's Volatility
LAB had surged from $7.31 to $16.24 on June 1 after the company announced a buyback. Momentum carried it to an all-time high of $27.96 hours before the crash. The entire cycle—from low to peak to collapse—unfolded in less than 48 hours. Traders who bought at the ATH lost over 78% in minutes.
Locked Tokens Insulate Many Holders
Approximately 282 million LAB tokens, or 90% of circulating supply, remained locked behind vesting schedules. Most of the $6 billion in erased value affected non-tradable allocations. Early investors and team members saw paper losses without the ability to sell during the crash. The locked supply meant the sell-off hit a thin market.
The $10,000 Bounty
ZachXBT alleged insiders control over 95% of LAB's float through opaque OTC deals, private sales, and team holdings. The analyst placed a $10,000 bounty for evidence against founder Vova Sadkov. No formal statement from the company has addressed the claim. The bounty remains active as investigators monitor on-chain flows for proof.
