This is a long running issue I raised too, amongst others. The actual process works fine minting and burning bHBD when there is liquidity. However the LEO finance team minted their own bHBD without a HBD deposit, the reason provided was for arbitrage opportunities, but that doesn't make sense to me, you can trace where it all went on the blockchain. Eventually it appears to makes its way to binance where you can no longer see where it went.

Its s shame we don't have a decentralised wrapped hive, and HBD. Perhaps the witnesses can crate a multisig system, so its not reliant on one key holder. Maybe once the L2 Eth chains take off after the next upgrade would be a good place to launch something like that.