#Alert🔴 #LAB 🚨
🚨 $LAB Scandal: ZachXBT Investigation, Manipulation, and a Trap for Shorters
The crypto market is in turmoil due to another high-profile investigation by the main on-chain detective ZachXBT. This time, the LAB project ($LAB) and its founder Vova Sadkov (vsadkovv) are under the spotlight.
What happened?
Analysts have discovered that the team and close insiders secretly control over 95% of the token issuance. In fact, the real circulating supply was hidden from retail investors, and the vesting rules were changed unilaterally in favor of the developers. Add to this suspicious OTC transactions and withdrawals on the exchange - and we have a classic scheme of hidden manipulation.
ZachXBT has already announced a public reward of $10,000 for additional evidence and called on major exchanges to freeze the project's wallets. Calls are now actively spreading online to block one of the large insider wallets with a balance of over 1.5 billion USDT to stop the manipulation.
📉 The trap on the chart: why shorting a “scam” is dangerous
Against this news, many traders opened short positions (for a drop), hoping for a quick collapse of the scam. However, the reality turned out to be painful - the market recorded mass liquidations and losses on shorts of -500% and more.
How did this happen?
1 The compressed spring effect: When news of a scam comes out, the crowd begins to short the asset en masse.
2 Liquidity manipulation: Since more than 95% of tokens are in the same hands, it costs nothing for market makers or insiders to artificially “pump” the price up (for example, from $8.3 to $18.4) to gather liquidity.
3 Result: A cascade of short liquidations, pushing the price even higher.
⚠️ The main conclusion:
Never short an obvious scam in the early stages of a panic if the project has a low Float (the proportion of tokens in free circulation). Market makers will squeeze the last juices out of you before finally letting the project go to the bottom.
$LAB is now a high-risk zone and a total casino.
