This is indeed a case in the prediction market that warrants caution.

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BITWU.ETH
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11 hours ago

🚨This is indeed a case in the prediction market that is worth being cautious about, I understand—

The hybrid architecture of Polymarket has a natural BUG: off-chain state and on-chain state can never be completely synchronized forever.

The attacker used a set of automated scripts, costing less than $0.1 in Gas, with approximately 50 seconds per cycle, the attack method—

1⃣ First, place a normal order using the API, allowing the off-chain system to confirm the match;

2⃣ Almost simultaneously, withdraw wallet funds on-chain using higher Gas, causing settlement failure;

3⃣ The system will forcibly remove all market maker orders involved in this match from the order book, creating an artificial vacuum in the market.

In this way, the attacker can make money in two ways:

1⃣ After repeatedly clearing the market, they can post extremely wide spreads in the artificially created market vacuum; if other users are eager to trade, they will be forced to accept this price.

2⃣ Trick market-making bots into misjudging trades and automatically hedging, then expose the opponent's unilateral positions instantly through a rollback; the attacker can then push the price or trade in the opposite direction, effectively ensuring a stable profit.

There hasn't been a large-scale attack yet, but if it becomes widespread, the depth of the order book will systematically shrink, ultimately harming the platform's competitive edge.

If the architecture cannot be changed, is it possible to introduce measures such as failure penalties or matching margins? @Polymarket


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