Polymarket has come under fire following reports of vote manipulation, causing losses for several traders.
How the Alleged Manipulation Unfolded
Polymarket relies on UMA's Oracle for bet verification. However, in the recent incident, a major UMA token holder reportedly used their voting power to profit. They voted for a 'YES' outcome with 25% of the votes, enabling a market outcome change. The market value was over $7 million, highlighting the incident's significance.
Was There a Trump-Ukraine Deal?
According to Reuters, Trump anticipated a revenue-sharing deal with Ukraine, but no official confirmation ensued. Many traders argue that an expectation does not equal a signed deal. One Polymarket user expressed anger, stating the market seemed fraudulent.
Polymarket’s Response and Trust in Oracles
A Polymarket representative acknowledged the unexpected outcome but insisted it wasn't a market failure, making refunds impossible. Polymarket and UMA are working to prevent further incidents, but user concerns about potential future manipulations remain.
The Polymarket scandal raises doubts about the fairness of decentralized betting markets, leading to calls for platform governance reforms.
