Polymarket has come under scrutiny following allegations of manipulation. A major UMA token holder reportedly used their influence to sway a market outcome that contradicts the actual events.
How the Alleged Manipulation Unfolded
Polymarket uses UMA's Oracle to verify bets. In this case, a major UMA holder allegedly voted for a "YES" outcome, securing significant profits. This participant controlled 25% of the votes, allowing them to overturn the decision despite protests about the nonexistent Trump-Ukraine deal.
Was There a Trump-Ukraine Deal?
Many traders point out the lack of official confirmation of such a deal, as Reuters reports. Despite Trump's statements about a planned agreement, there were no concrete conclusions.
Polymarket’s Response to the Controversy
A Polymarket representative acknowledged that the resolution was unexpected, but not a market failure. Polymarket is collaborating with UMA to prevent future incidents, though users remain concerned about manipulation possibilities.
The Polymarket situation raises questions about the integrity of decentralized betting markets and underscores the need for governance reforms to prevent future attacks.
