SMU Assistant Professor of Finance Shihao Yu co-authored a working paper with Stanford researchers that raised concerns about alleged manipulation of Polymarket's five-minute Bitcoin (CRYPTO: BTC) binary contracts. Researchers found that traders may buy Bitcoin on Binance during the final seconds of a contract to push the settlement price above the opening price, increasing their chances of receiving the $1 payout.
*Related Research: Settlement Manipulation in Prediction Markets (working paper)