Polymarket, a crypto-based prediction marketplace, faced allegations of market manipulation by UMA token holders. Users reported that a market predicting a deal between President Trump and Ukraine resolved in favor of 'yes' despite no agreement being reached, raising questions about the integrity of UMA's oracle system. The platform acknowledged the situation but refused to offer refunds, claiming the issue wasn't a market failure. This admission followed accusations from users and analysts alleging that manipulation has been ongoing, particularly with inquiries regarding other prediction markets. Despite this turmoil, Polymarket had witnessed a surge in trading volume leading up to the recent U.S. election before seeing a drop afterward. Users have expressed frustration at Polymarket's handling of the situation and the apparent lack of accountability for resolved markets, suggesting a broader trend of manipulated markets on the platform.

Source 🔗