Stanford Researchers Find Manipulation Signs in Polymarket's 5-Minute Bitcoin Market, $8.2M Suspected Gains

BTC-0.37%
According to Bloomberg, Stanford University researchers discovered manipulation patterns in Polymarket's 5-minute Bitcoin prediction market over a two-month research period. The study found repeated one-directional trading pulses on Binance that briefly influenced Bitcoin prices seconds before contract settlement, benefiting participants with aligned positions. Suspected manipulators earned approximately $8.2 million, primarily from retail trader losses. Polymarket stated it uses multiple independent price oracles for accuracy and plans to transition some markets to longer settlement windows next year to enhance market integrity. Similar patterns were not observed in 15-minute markets.
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