Stanford Study: Polymarket's Bitcoin Bets Were Rigged in the Final 10 Seconds
A small group of traders extracted $8.2 million from Polymarkets five-minute bitcoin contracts by pushing the spot price on Binance just before settlement, researchers from Stanford University and Singapore Management University found. Key TakeawaysStanford and SMU researchers found 821 traders took $8.2 million from Polymarkets 5-minute bitcoin bets.Net order flow on Binance jumped about 50% in the final 10 seconds before settlement, the study found.The paper says 15-minute contracts show far less abuse, pointing to longer settlement windows as the fix. Striking New Findings Emerge Polymarket‘s fastest bitcoin betting product shows systematic signs of settlement manipulation, according to a new study by David Dai and Ruizhe Jia of Stanford University’s Department of Management Science and Engineering and Shihao Yu of Singapore Management Universitys Lee Kong Chian School of Business. Image source: arxiv.org The working paper, titled “Settlement Manipulation in Prediction Markets,” examined roughly 16,000 five-minute bitcoin up-or-down contracts from their Feb. 12, 2026 launch through April. The contracts settle against a Chainlink oracle that aggregates spot prices from major exchanges, meaning whoever can nudge the spot price in the final moments can decide which side of the bet pays out. Describing the profits, the authors wrote that manipulators “take $8.2 million in the pushed cycles while