Bloomberg: Polymarket's trading volume significantly inflated due to "wash trading"

According to a report by Bloomberg, a recent study by researchers at Columbia University indicates that the trading activity on Polymarket, one of the most popular prediction markets, is significantly inflated by so-called "wash trading"—that is, the behavior of users frequently buying and selling the same contract within a short period of time.

The study's findings show that this phenomenon, referred to by the researchers as "artificial trading," varies over time but has averaged about 25% of all trading volume on Polymarket over the past three years.