Polymarket Faces Backlash Over Alleged $7 Million Market Manipulation
Polymarket faces backlash over alleged manipulation of a $7 million prediction market regarding a U.S.-Ukraine mineral deal. The outcome, resolved as “Yes,” lacked official confirmation from relevant governments, violating stated rules that outcomes depend on government sources. Users claim this is the biggest manipulation case in Polymarket's history and accuse insiders of influencing results.
- Two previous similar markets with lower stakes resolved differently, raising questions about fairness.
- A participant reportedly used 5 million UMA tokens to sway voting, representing 25% of total voting power.
- Polymarket's team acknowledged the issue but refused refunds, citing it as a unique situation rather than a platform failure.
- Past manipulation claims include vague rules and disabling dispute options during critical periods.
- Concerns about the UMA system highlight that a few large holders control significant voting power, compromising fairness.
- Challenging market outcomes requires a bond of $750 USDC, which smaller users may find prohibitive.
- Voting actions are anonymous, preventing accountability for market manipulation.
Polymarket’s credibility is questioned, with user confidence at risk unless changes are implemented.