Polymarket faced user backlash after a major UMA token holder allegedly manipulated the platform's oracle system, resulting in incorrect bet settlements.
How the Alleged Manipulation Unfolded
Polymarket relies on UMA's Oracle to verify and resolve bets, yet recent events indicate that those with more voting power can sway decisions. An 'insider whale' reportedly used 5 million UMA tokens to vote 'YES' in a Trump-Ukraine deal question, controlling 25% of votes to influence the result, despite no confirmed agreement.
Was There a Trump-Ukraine Deal?
On March 25, Trump stated he expected a U.S.-Ukraine revenue-sharing agreement soon, but no official confirmation came from governments. A user commented, 'This is a big joke. Zelensky just announced they are looking into a bigger deal, meaning there was no deal.'
Polymarket’s Response to the Controversy
A Polymarket representative acknowledged the unexpected outcome, insisting it wasn't a market failure. 'We are aware and are working with UMA's oracle team to prevent future incidents.' Users, however, question if the system still permits outcome manipulation.
The incident has drawn criticism towards Polymarket, raising questions about oracle reliability and the need for governance system reforms.
