How do you LOSE a gaudy $500,000 diamond ring? Ask Nick Young ...
The NBA star hit up The Nice Guy in WeHo Tuesday night -- along with his Lakers teammate Jordan Clarkson -- when we asked what he did with the engagement ring he got back from Iggy Azalea.
His response? He "lost" it ... to collect the insurance money!
Clearly, he's joking ... wonder if Iggy's laughing?