Summary
Prediction market platform Polymarket was found to have a critical price manipulation vulnerability: traders could exploit a five-second window to artificially push prices and extract millions in profits. After months of public warnings from onchain analysts, Polymarket is moving to implement time-weighted average prices.
Details
According to CoinDesk, the vulnerability stems from Polymarket’s pricing mechanism being too reliant on instantaneous prices, allowing attackers to profit by manipulating prices in extremely short time windows. Onchain security analysts discovered and publicly warned about this issue months ago, but the platform had not taken effective action until now.
Polymarket has announced a shift to time-weighted average price (TWAP) mechanism, making artificial price manipulation significantly more costly. This change aims to ensure market prices more accurately reflect actual supply and demand rather than being distorted by short-term manipulation.
Editor: GoodInfo Global News Team