Polymarket hit with $600 million in flagged post-election wash trades
Researchers flagged over $600 million in Polymarket trades on election markets after races had already concluded. More than 98% of that volume was tagged as potential wash trading. The activity centered on zombie election markets for contests in Ethiopia and Romania that remained open once results were known. A source quoted in a Wired investigation called the activity obviously some form of manipulation or irregular trading.
Polymarket's $600 million in flagged post-result trades is not a volume bragging point. It is a credibility wound that regulators and rival venues will exploit. The 98% wash-trade share means nearly all that activity was fake volume, not organic demand. Polymarket, this erodes the trust that keeps whales and market makers posting tight spreads.
For traders, it raises the risk that quoted depth on election contracts is illusory, and that exit liquidity vanishes when needed most. State attorneys general already cite Polymarket examples in their briefs; fresh evidence of market manipulation on offshore contracts feeds that narrative directly. Competitors like Kalshi, with its CBS News tie-in and regulated book, gain contrast ammunition without spending a dollar.