Last night, a governance issue on Polymarket was reported, where a large UMA holder allegedly used last-minute voting to manipulate outcomes.
The Polymarket and Ukraine Situation
The market was about whether Ukraine would sign a mineral agreement with Trump before April. As of the market settlement, no official agreement had been made. Despite this, Polymarket decided the result as ‘YES’, raising concerns about fairness.
The Impact of a Major UMA Holder
A major UMA holder manipulated the oracle by casting 5 million tokens across three accounts, controlling 25% of the votes to profit from false results. Polymarket acknowledged the issue but cannot offer refunds.
Negligence or Manipulation? User Perspective
A user noted that this incident was due to extreme negligence from both Polymarket and UMA, rather than a governance attack. The late intervention by Polymarket added to the confusion.
The incident highlighted the need for improved systems and rules on the platform.
