Stanford Researchers Find Manipulation in Polymarket Bitcoin Contracts
Researchers from Stanford University and Singapore Management University found signs of manipulation in 5-minute Bitcoin contracts on Polymarket. They estimate 821 wallets gained $8.22M, while retail and other traders lost $7.61M.
A study by researchers at Stanford University and Singapore Management University has identified suspicious trading patterns in Polymarket's five-minute Bitcoin contracts. According to the research, 821 wallets collectively earned $8.22 million during cycles with anomalous activity, while retail and unclassified participants lost $7.61 million.
The suspected scheme involved large spot-market trades in the final seconds before contract settlement, temporarily shifting the Bitcoin price in a favorable direction. The authors caution that the findings do not prove intent by the wallet owners or a direct link between spot traders and Polymarket payout recipients.
Source: ForkLog