Foreign media: Polymarket is rife with fake "wash" transactions

According to Fortune magazine, analysts at blockchain firm Chaos Labs and Inca Digital have found rampant wash trading on Polymarket. They found signs of fake trading activity in Polymarket, where buying and selling are often done simultaneously and repeatedly to create the illusion of volume and activity. Chaos Labs found that fake trading accounts for about a third of the US Presidential Election market volume on Polymarket, while Inca Digital found that a significant portion of the market volume could be attributed to potential fake trading.
Chaos Labs and Inca Digital found that the reported volume of presidential election predictions on the Polymarket website did not match the on-chain data. Inca said the actual volume of transactions in the presidential election prediction market was around $1.75 billion, while Polymarket reported a figure of $2.70 billion. Chaos Labs attributed this to Polymarket's confusion of trading stocks with the U.S. dollar.