Polymarket came under fire after reports of manipulation using UMA tokens, leading to a dispute resolution about a non-existent agreement.
How the Manipulation Unfolded
Polymarket relies on UMA's Optimistic Oracle, but a major UMA token holder manipulated a market outcome. This insider whale spent 5 million UMA tokens, controlling 25% of the votes, which allowed them to overturn the decision.
Was There a Trump-Ukraine Deal?
On March 25, Trump mentioned expecting an agreement with Ukraine, but no official confirmation was made. Polymarket users expressed dissatisfaction, citing the lack of an actual agreement.
Polymarket’s Response to the Controversy
Following the incident, a Polymarket representative stated the situation wasn't a market failure and refunds were not possible. The company is working to prevent future incidents, but users remain displeased.
Such incidents call into question the reliability of decentralized markets, raising concerns among participants about the fairness and transparency of the process.
