How a 5-Second Binance Move Turned Polymarket Settlements Into an $8.2M Payday
Researchers from Stanford University and Singapore Management University have identified that 821 accounts exploited settlement windows on Polymarket's prediction markets, extracting $8.2 million through market manipulation. The exploit involved manipulating prices on Binance during settlement windows to ensure favorable contract resolutions. Polymarket has since updated its settlement mechanics to a time-weighted average price (TWAP) to prevent future manipulation, a change that took months of trader complaints and academic research to implement.
- Entities
- Company: Chainlink
- Company: Singapore Management University
- Company: Commodity Futures Trading Commission
- Company: Polymarket
- Company: Stanford University
- Company: Kalshi
- Topic: Cryptocurrency
- Company: Axis Robotics
- Company: Binance
- Topic: Market Manipulation
- Topic: Prediction Markets
- Game: Bitcoin
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