Against better judgement, since you have the Xtar VP2, you could try to recover the spent Sony battery. But keep a very close eye on them during the process, and be ready for a possible thermal runaway.
Generally speaking, an IMR/hybrid battery (Sony VTC) is considered spent once it falls to 2.5 volts or lower. Some chargers, like the Xtar VP2, have the ability to recover a spent battery using special algorhythms. I have no personal experience with this and am only relating what I've read.
If it was me, I'd recylcle the battery at a Home Depot or Radio Shack.