A Stanford study and Bloomberg analysis reveal coordinated trading patterns exploiting crypto prediction platforms, prompting regulatory action from the CFTC. A Bloomberg investigation has uncovered widespread manipulation risks in prediction markets, particularly when those markets intersect with politics and geopolitics. AdvertisementBloomberg Businessweek’s own analysis went further, examining approximately 34,000 trades flagged for suspicious activity between August 2025 and June 2026. And 57% of those flagged wallets were created less than 24 hours before the trades occurred. Polymarket has referred nearly 100 suspicious wallets to law enforcement agencies.