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Polymarket Sets $3.9M Refund Plan After Third-Party Script Compromise

Grade Abearish AI signal
Polymarket announced a $3.9 million refund plan following an October 29 security incident involving a compromised third-party monitoring script that accessed active user sessions and moved funds. The compensation includes $2.7 million linked to the attack and $1.2 million in trading-pause losses, with 95% of affected wallets reportedly fully refunded as of October 30. The incident could intensify scrutiny of DeFi platform security, third-party website dependencies and user protection across prediction markets.

Bullish strength: 20/100

  • Polymarket committed $3.9 million to compensate affected users.
  • The company reported that 95% of affected wallets had been fully refunded.
  • The compromised script was removed and sessions were reset.

Bearish strength: 80/100

  • A third-party monitoring script compromise enabled unauthorized position sales and fund transfers.
  • The incident disrupted Polymarket's international platform and forced a temporary trading and relayer shutdown.
  • The $3.9 million compensation includes losses beyond directly affected funds, highlighting the broader operational impact.
  • Remaining refund disputes and the effectiveness of replacement security controls have yet to be fully established.

This is automated NewsSignals analysis of third-party reporting, not independent original reporting or investment advice. AI scores are not price predictions.

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