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Trader Claims Polymarket Scammed Him for $500K on MicroStrategy’s Bitcoin Sale Market

A Polymarket dealer has accused the prediction market platform of unfairly resolving a disputed market tied to Strategy’s first Bitcoin sale in years.

The dealer claims he misplaced round $500,000 after betting that the agency had bought BTC earlier than a May 31 deadline – one thing that was formally confirmed by an SEC submitting on June 1.

Strategy’s Bitcoin Sale Sparks Serious Controversy

The entire factor facilities on a Polymarket occasion asking whether or not MicroStrategy (later rebranded to Strategy) would promote any of its Bitcoin by a particular date. The guidelines acknowledged that the market would resolve to “Yes” if the corporate bought any BTC by 11:59 ET on May 31. Resolution sources included on-chain information, disclosures, and credible reporting.

On June 1, Strategy filed an 8-Ok with the Securities and Exchange Commission. As CryptoPotato reported, the agency bought 32 BTC price roughly $2.5 million between May 26 and May 31 – clearly inside Polymarket’s decision interval.

However, the submitting got here sooner or later after the May 31 market deadline, creating the central dispute: ought to the occasion be judged by when the sale occurred, or by when it was publicly confirmed?

Trader Says Polymarket Added a Rule After the Fact

According to the dealer, he began shopping for “Yes” shares after noticing that Strategy had deposited round $30 million of BTC into Coinbase Prime every week in the past – a transfer that escalated speculations that the agency would promote.

He mentioned he had reviewed on-chain information, checked previous pockets exercise, and concluded that Strategy had possible bought BTC earlier than the deadline.

After the agency confirmed the sale on June 1st via the SEC submitting, the dealer elevated his place. He mentioned that the market was nonetheless open, arguing that the foundations solely required a sale throughout the timeframe – not affirmation throughout the timeframe. Here’s the place it will get attention-grabbing.

The dealer claims that Polymarket added a clarification stating that affirmation achieved exterior the market’s timeframe wouldn’t qualify. And they did that after the very fact.

The person mentioned that the transfer constituted a brand new rule and alleged that the market ought to both have resolved to “Yes” or closed on May 31 if post-deadline affirmation was not allowed.

At the time of this writing, the market has been resolved to “No.”

The most important downside right here, according to other traders on Polymarket, is that anybody can dispute a market’s decision by posting a bond, which triggers a debate interval. During that debate interval, a set of people that maintain UMA tokens vote on the proper decision based on the predefined guidelines. Many argue that this creates a scenario by which UMA whales can manipulate markets throughout dispute home windows, and that Polymarket is doing nothing about it.

The publish Trader Claims Polymarket Scammed Him for $500K on MicroStrategy’s Bitcoin Sale Market appeared first on CryptoPotato.

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