Polymarket Publishes Enhanced Market Integrity Rules Across Its DeFi Platform «

[Oshosondy]

In short, this is about market manipulation and it is mostly about insider trading:

Trading on stolen confidential information — participants may not trade on any contract if they possess confidential information about the outcome or likely outcome of the underlying event, where using that information would violate a preexisting duty or obligation of trust or confidence owed to another person or entity.

Trading on illegal tips — participants may not trade on confidential information passed to them by someone who owed a preexisting duty of trust or confidence to someone else, if they know or have reason to know that the person who shared the information would be prohibited from trading on it themselves.

Trading by those who can influence the outcome — participants may not trade on any contract if they hold a position of authority or influence sufficient to affect the outcome of the underlying event.

They also prohibit other types of fraud and market manipulation including spoofing, wash trading, and fictitious transactions, as well as self-dealing, front-running, information misuse, attempted manipulation, and disruptive practices that that undermine the orderly operation of markets according to where I get it from.

https://www.businesswire.com/news/home/20260320997513/en/Polymarket-Publishes-Enhanced-Market-Integrity-Rules-Across-Its-DeFi-Platform-and-CFTC-Regulated-U.S.-Exchange

Example are those newly created accounts that later won huge amount of money on Polymarket about United States to invade Iran in February. Those can easily be spotted and blocked. This truly shows how Polymarket is not decentralized but this is not the discussion of today as we are only want to discuss about market manipulation.

So I think if the platform mean it, they should be able to reduce market manipulation or do you think they are only trying to make regulators not go against their platform?

[cryptoaddictchie]

Example are those newly created accounts that later won huge amount of money on Polymarket about United States to invade Iran in February. Those can easily be spotted and blocked. This truly shows how Polymarket is not decentralized but this is not the discussion of today as we are only want to discuss about market manipulation.

So I think if the platform mean it, they should be able to reduce market manipulation or do you think they are only trying to make regulators not go against their platform?

Ive seen some X tweet about manipulations on polymarket and I think they might be right cause some suspicious bets that has huhe wins are noticed.

Im not using polymarket but most of my friends and colleagues using it and based on them sometimes the bets are remove if they should have win something off the bets. Like changing the topic or rules to invalidate their bet which is clearly a win. Im not sure cause I dont use it. But there are a lot ofbusers who uses it obviously farming potential utility token of them.

[m2017]

In short, this is about market manipulation and it is mostly about insider trading:

Trading on stolen confidential information — participants may not trade on any contract if they possess confidential information about the outcome or likely outcome of the underlying event, where using that information would violate a preexisting duty or obligation of trust or confidence owed to another person or entity.

Trading on illegal tips — participants may not trade on confidential information passed to them by someone who owed a preexisting duty of trust or confidence to someone else, if they know or have reason to know that the person who shared the information would be prohibited from trading on it themselves.

Trading by those who can influence the outcome — participants may not trade on any contract if they hold a position of authority or influence sufficient to affect the outcome of the underlying event.

But are prohibitions really enough to stop anyone when huge profits are at stake? The temptation (and potential profit) of exploiting insider information is too great, so I think there will always be those willing to take advantage of a good opportunity.

Example are those newly created accounts that later won huge amount of money on Polymarket about United States to invade Iran in February. Those can easily be spotted and blocked. This truly shows how Polymarket is not decentralized but this is not the discussion of today as we are only want to discuss about market manipulation.

So I think if the platform mean it, they should be able to reduce market manipulation or do you think they are only trying to make regulators not go against their platform?

Any service is forced to comply with the regulator, otherwise, it will cease operations. This is a necessary measure. I have no idea what Polymarket (the management team) wants, as I don't have any inside information (are any of its users on Polymarket's staff? ). If this service were concerned about eliminating manipulation on their platform, they probably would have done so before the regulator's attention, and not the other way around. These guys are just making money, and they even get their commissions from bets involving market manipulation (They got their commission from betting on events in Iran, didn't they?).

[Dave1]

Example are those newly created accounts that later won huge amount of money on Polymarket about United States to invade Iran in February. Those can easily be spotted and blocked. This truly shows how Polymarket is not decentralized but this is not the discussion of today as we are only want to discuss about market manipulation.

So I think if the platform mean it, they should be able to reduce market manipulation or do you think they are only trying to make regulators not go against their platform?

Ive seen some X tweet about manipulations on polymarket and I think they might be right cause some suspicious bets that has huhe wins are noticed.

Yes, I guess it all started with the Trump win, as someone bet on huge money on it. Might not look like a manipulation in the early stages, but after that there are a lot of suspicious bets like the Iran conflict and when to start. Someone could have put a lot of money on it that has insider information in the White house, I reckon.

Im not using polymarket but most of my friends and colleagues using it and based on them sometimes the bets are remove if they should have win something off the bets. Like changing the topic or rules to invalidate their bet which is clearly a win. Im not sure cause I dont use it. But there are a lot ofbusers who uses it obviously farming potential utility token of them.

Ah, clearly Poly might have tougher rules about this one, but still you can't discount that they want to removed it because they don't want someone to win as compare to manipulations that maybe the people inside of Polymarket too might be riding on the coat tail to double their money.

[crwth]

I'm curious about how Polymarket would enforce these rulings they have. Are those going to be on-chain analysis to see some sketchy behavior? Would they be implying KYC? Or would they be regulated or something?

There is a lot of insider trading happening in the prediction space, whether it's election or sports outcomes, but it's happening all over. That's just how humans are as greedy creatures.

[Yaunfitda]

So I think if the platform mean it, they should be able to reduce market manipulation or do you think they are only trying to make regulators not go against their platform?

They are making a lot of money here, imagine that so why change their business model if they can continue with it? Sure there could be country that are going to ban them like recently Argentina. But there are lot of speculators still inside and playing with money and their services are booming even if there are competitions. So I don't see them changing everything because there are sort of allegations that there are manipulators inside their platform or at least using their platform to make millions. Regulators will really have to step up against Polymarket if they wanted to stop them.

[viljy]

This is an attempt to throw dust in the eyes of regulatory authorities. Because people are starting to realize that something is wrong here. There is no mechanism on Polymarket to prevent insider betting. And why not? - Because the Polymarket was created for insider betting and money laundering. It is enough to look closely at the mechanism of its operation, and it will become obvious. And all this statement (inarticulate muttering) by the official representatives of this site about combating fraud by investigating denunciations - well, it's just ridiculous.

There is no other way to prevent manipulation than to simply limit the range of bets to those where insider trading is impossible (there is no human factor for the outcome of the event, which is determined by a narrow circle of people). The problem is that the Polymarket allows such manipulated bets. And this is done intentionally. Therefore, Shayne Coplan will certainly not introduce any restrictions. Restrictions may appear only when he becomes an SBF cellmate, whom he looks so much like (only thin)

[danherbias07]

Truly, it should be investigated, and it's because it is doubtful that someone will know about that unless they have an insider. They might consider the bet amount that was made. If it is huge and almost like someone is so sure about his bet that he doesn't worry about it. Then, manipulation is happening, and it should not happen in cases of prediction markets or betting sites.
The problem is, will they ever check it? Of course, the said website is trying to prove that they are a decentralized prediction site. I don't really know how it happens on that website since I have not registered yet, but I am sure they can detect some questionable bets in their system.

[iv4n]

So I think if the platform mean it, they should be able to reduce market manipulation or do you think they are only trying to make regulators not go against their platform?

Both... they want protection, and they want less manipulation. But in reality, it's impossible to fully remove it. There will always be people who will try to make money this way.

I wonder if these types of manipulations affect ordinary players, and in what ways? I am not completely sure I understand how some markets work exactly...

[Oshosondy]

I have also read that Kalshi has implemented similar rules yesterday, but I am surprised that there could also be manipulations on prediction market like Kalshi with the KYC that is mandatory on the platform before their customers can be able to make use of the prediction market.

Both... they want protection, and they want less manipulation. But in reality, it's impossible to fully remove it.

I think I go with what you people posted which is that market manipulation is not easy to fight and that it may continue.

[Ziskinberg]

So I think if the platform mean it, they should be able to reduce market manipulation or do you think they are only trying to make regulators not go against their platform?

LOL it already happened. What regulators want is prevention, not just dealing with the aftermath. So if they investigate and find violations from these prediction markets, penalties will definitely follow. Honestly I don’t even understand why they’re still so popular until now, even with many countries already considering banning them. They must have strong backing or resources to keep operating like that, I guess.

[KTChampions]

~
They also prohibit other types of fraud and market manipulation including spoofing, wash trading, and fictitious transactions, as well as self-dealing, front-running, information misuse, attempted manipulation, and disruptive practices that that undermine the orderly operation of markets according to where I get it from.

https://www.businesswire.com/news/home/20260320997513/en/Polymarket-Publishes-Enhanced-Market-Integrity-Rules-Across-Its-DeFi-Platform-and-CFTC-Regulated-U.S.-Exchange

Example are those newly created accounts that later won huge amount of money on Polymarket about United States to invade Iran in February. Those can easily be spotted and blocked. This truly shows how Polymarket is not decentralized but this is not the discussion of today as we are only want to discuss about market manipulation.

So I think if the platform mean it, they should be able to reduce market manipulation or do you think they are only trying to make regulators not go against their platform?

Spoofing is clearly a scam and should be banned. Otherwise, everything is very murky. Wash trading – how to detect it? Front-running: If we are talking about external information, what is the problem? If we're talking about high-frequency trading, it should be banned just like spoofing. What is misuse of information? Why is self-trading prohibited (especially after they introduced commissions)? How to identify insider trading, and why does Polymarket care where I got the information? Too many questions.
I hope they fix the spoofing and the rest is written only for declarative purposes.

[rdluffy]

I’m sure there will be a lot of controversy in the future surrounding prediction markets like Polymarket and Kalshi
Some cases are supposedly “easy” to spot as manipulation, such as extremely high bets placed just minutes before an event takes place
However, without KYC and with many accounts holding smaller amounts, people can still manipulate these predictions

There will be a lot of controversy over canceled predictions, lost money, etc

[Slow death]

I keep wondering how they intend to combat market manipulation, because banning someone who created an account and the next day won a lot of money and accusing them of having insider information seems wrong to me if they don't have other concrete evidence. Just basing it on the assumption that someone created a new account and won a lot of money means they had insider information, which isn't concrete proof.

It seems to me that these sites create markets without first analyzing whether they will actually be able to detect cheating. And we all know that on these sites, managers don't miss an opportunity to block accounts or confiscate people's funds, always using the same reason: cheating and against their Terms of Service. That's why I prefer to stay away from these sites and only focus on sports betting.