According to Foresight News , citing CoinDesk, a trader using an alias on the Polymarket platform profited approximately $233,000 by exploiting weak liquidity during weekend trading by implementing a coordinated strategy in both the prediction and spot markets. The trader actively bought "UP" stock on Polymarket, then executed a $1 million XRP buy on Binance to drive up the price, ensuring smooth contract settlement, before quickly selling the XRP. This incident highlights a vulnerability in Polymarket's automated market-making bots, which treat every price tick as identical. They fail to recognize key dynamic factors such as trading volume, liquidity conditions, adversarial strategies, and changes in incentive mechanisms as settlement approaches.
A trader profited approximately $233,000 through weekend trading on the XRP market at Polymarket, sparking controversy over market manipulation.
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