[HN Gopher] Traders placed over $1B in perfectly timed bets on t...
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       Traders placed over $1B in perfectly timed bets on the Iran war
        
       Author : trocado
       Score  : 171 points
       Date   : 2026-04-18 18:36 UTC (4 hours ago)
        
 (HTM) web link (www.theguardian.com)
 (TXT) w3m dump (www.theguardian.com)
        
       | hdhdhsjsbdh wrote:
       | Yet more evidence of the rapid disassembly of the social contract
       | and our collective ethics, aided of course by unregulated tech.
       | If you work for - or are involved in the funding of - these
       | unregulated gambling and insider trading platforms, you should be
       | ashamed of yourself. Your greed and lack of concern for the
       | health of the human world you live in is sickening. You can get
       | bag after bag but it will never fill the void in your soul.
        
         | cyanydeez wrote:
         | Isn't it more than the ability to manipulate global markets
         | essentially means we're headed towards a global inflation
         | crisis? No one with critical thinking skills believe Elon's
         | valuations are a rational market concern.
         | 
         | But if they _are_ rational, eg, a zimbawean inflation
         | nightmare, then if you're not trying to "escape the permanent
         | underclass" then _you_ are the irrational person.
         | 
         | So ignoring all politics, we're really dealing with a zeitgeist
         | of people who think wealth inequality is endless, and the only
         | way to survive is to lobster bucket and YOLO every chance to
         | gamble.
        
         | thot_experiment wrote:
         | This applies to almost everyone working on SaaS; not in all
         | cases, but the absolute majority work on SaaS means creating
         | artificial scarcity in order to extract value from people. It
         | is a fundamentally evil, antisocial, anti human thing to do. If
         | you believe that is okay to restrict access to infinite
         | resources to preserve the status quo you deserve the same place
         | in hell as the people pushing gambling.
         | 
         | Don't create artificial scarcity. Don't play zero sum games.
        
           | cmwelsh wrote:
           | I've never heard "intellectual property" phrased as
           | "artificial scarcity" and it isn't exactly wrong...
        
           | com2kid wrote:
           | > This applies to almost everyone working on SaaS;
           | 
           | The original idea behind SaaS is to align the incentives of
           | the customers and the software company.
           | 
           | Historically software companies made money on selling
           | upgrades. This meant bug fixes were not a priority, and
           | security fixes were something companies got shamed into
           | doing.
           | 
           | SaaS fixes that incentive problem. With reliable ongoing
           | revenue a company can keep software patched and updated and
           | doesn't have to cram a bunch of new shiny marketable features
           | in just to make a huge sale every 3 or 4 years, while
           | engineers try and add whatever bug fixes they can after the
           | shiny new features have been polished off.
           | 
           | It also means software companies don't have boom or bust
           | cycles with hiring. Funding stays consistent, and so does
           | staffing. It makes the financials much easier to manage.
           | Companies used to hire a bunch of temp employees in the run
           | up to a release.
           | 
           | Ongoing release cycles also led to better software
           | engineering practices. More automated tests, reproducible
           | builds, better version control systems, and a lot more things
           | that we take for granted now days.
           | 
           | There are obvious downsides to SaaS as well, but the original
           | idea was good.
        
           | shigawire wrote:
           | > almost everyone working on SaaS; not in all cases, but the
           | absolute majority work on SaaS means creating artificial
           | scarcity in order to extract value from people.
           | 
           | Maybe this is just my lack of understanding in how most SaaS
           | companies operate... But to me making software that people
           | find valuable and charging them for that is not inherently
           | immoral. Surely that is the majority of cases?
        
           | Noaidi wrote:
           | > Don't create artificial scarcity.
           | 
           | Nah. You know what the answer is? Get to a mental and
           | physical state where you need very little. Right now the only
           | way to win is not to play.
        
           | throwaway132448 wrote:
           | This is pseudo-intellectual drivel. Creating value and then
           | charging for it is not creating "artificial scarcity", any
           | more than doing nothing is creating "artificial scarcity" by
           | absence of value. There was no "infinite resource" that just
           | happened to exist before the work was put in to create it.
           | And creating value is - almost by definition - completely
           | orthogonal to zero sum games.
        
         | paulpauper wrote:
         | Insider trading exists with stocks too. I mean, if there is a
         | way for people to profit by bending the rules or information
         | asymmetry, someone will find a way.
        
         | CPLX wrote:
         | This is the only reasonable point of view to take on the
         | widespread and obviously unethical outbreak of gambling
         | platforms. The fact that it's downboated and towards the bottom
         | is just a reflection of how far the discourse has fallen.
         | 
         | Granted, maybe I should be less surprised given the fact that
         | this is all being posted on the promotional website of a
         | technology-focused private equity fund, but it's disappointing
         | nonetheless.
        
         | arjie wrote:
         | The biggest sums involved appear to be on the oil futures
         | market. That market has existed for a long time (half a century
         | to a century depending on the sophistication you measure). If
         | this is is a novel occurrence it cannot be the platform that
         | 'caused' it.
         | 
         | I think it's just that we create useful tools: futures, the
         | pre-emptive pardon, and so on. Then people figure out how to
         | use those tools to enrich themselves in ways we did not
         | anticipate. It's just a question of how we fix our machinery in
         | this cat and mouse game or if it is fixable at all.
        
       | cineticdaffodil wrote:
       | Now of cocourse there are bots circling watching for insider
       | trades. Which you can "milk" by pretending to insider trade and
       | then hedging a bet against them. A whole eco system of scoundrels
        
         | paulpauper wrote:
         | and then spoofing. Creating fake trades to entice copycats.
        
         | artificialprint wrote:
         | You don't get it, you can make m o n e y with it, with which
         | you can buy a yacht and an expensive car.
        
       | ck2 wrote:
       | What's the statute of limitations on such things?
       | 
       | Because it won't be prosecuted by 2029 but could be afterwards
       | 
       | Personally I think it's a bigger problem when the President sues
       | his own government for billions and then orders them to pay it
       | out
       | 
       | Because -that- is not an official act. It could be prosecuted but
       | no-one will touch it even after 2029
        
         | cbg0 wrote:
         | Unless somebody snitches there's no real way to prosecute
         | insider trading. You can say you just felt like making a trade,
         | or that you read one of Trump's posts the moment he put it up
         | on Truth Social and you just happened to have the trade ready
         | to go.
         | 
         | Unless they're absolute morons, the people doing insider
         | trading for large sums of money will have already built a
         | strong alibi.
        
           | oa335 wrote:
           | > Unless they're absolute morons, the people doing insider
           | trading for large sums of money will have already built a
           | strong alibi.
           | 
           | My theory is they are banking on preemptive presidential
           | pardons in Dec 2028.
        
             | Noaidi wrote:
             | Trump already said he will do this.
             | 
             | https://www.msn.com/en-us/news/politics/trump-plans-to-
             | pardo...
             | 
             | https://www.independent.co.uk/news/world/americas/us-
             | politic...
        
               | JumpCrisscross wrote:
               | Keep in mind that preemptive pardons have not been upheld
               | by the courts [1].
               | 
               | [1] https://www.criminallawlibraryblog.com/preemptive-
               | pardons-co...
        
           | ZeroGravitas wrote:
           | In some nations just gambling on a war that your soldiers
           | have died in would ruin people's careers and possibly their
           | lives permanently as they are shunned by society.
           | 
           | In other nations you can illegally sell arms to Iran in order
           | to illegally evade congress's attempts to stop you supplying
           | money to terrorists, illegally shred evidence and lie to
           | congress under oath about it all and get a job as a pundit on
           | Fox News.
        
           | paulpauper wrote:
           | _you can say you just felt like making a trade, or that you
           | read one of Trump 's posts the moment he put it up on Truth
           | Social and you just happened to have the trade ready to go._
           | 
           | An employee with access to Truth Social's backend can in
           | theory do this by reading the tweets he's writing before he
           | sends them.
        
           | bdcravens wrote:
           | I'm not convinced there won't be someone with a chip on their
           | shoulder eager to snitch. Trump has been known to leave folks
           | out to dry once they're used up (for example, Ruby Giuliani
           | and Mike Lindell). Just today there's been discussion about
           | how Kash Patel feels like he's on the chopping block:
           | 
           | https://news.ycombinator.com/item?id=47813001
        
           | JumpCrisscross wrote:
           | > _Unless somebody snitches there 's no real way to prosecute
           | insider trading. You can say you just felt like making a
           | trade_
           | 
           | If you have perfect opsec, sure, you'll just waste a few
           | years and hundreds of thousands of dollars in court. If you
           | texted a friend, or told a friend who then texted a friend,
           | or traded too soon to receiving privileged information,
           | you're probably fucked.
           | 
           | > _Unless they 're absolute morons_
           | 
           | At least in securities, the dirty secret is most insider
           | traders are in Congress and/or morons.
        
         | SwellJoe wrote:
         | Given Trump has promised blanket pardons for any illegality
         | from his administration during his term, I think the question
         | will be whether pardons for crimes not yet investigated/charged
         | are covered by the pardon and whether anyone will pursue those
         | investigations and convictions.
         | 
         | Democrats have historically not really been willing to do
         | anything if there's any plausible sounding reason for doing
         | nothing, so I'm guessing they'll jump at the opportunity to
         | wave away the insider trading stuff. Let bygones be bygones,
         | you know, in the spirit of bipartisanship and comity. They
         | slow-rolled prosecuting the crimes of the first Trump
         | administration. So slow that he was re-elected before anything
         | began to happen.
        
         | cheschire wrote:
         | Doesn't matter. They'll be pre-pardoned.
         | 
         | https://thehill.com/opinion/white-house/5829203-presidential...
        
       | echelon wrote:
       | What value do prediction markets give to anyone not in the
       | insider trading class?
       | 
       | I predict these will be banned when someone finally uses them as
       | an "assassination market".
        
         | dogtorwoof wrote:
         | I would argue that the sole value of prediction markets is to
         | make insider knowledge accessible to the general public,
         | quicker than it normally would.
         | 
         | That's why these platforms saying things like "we will roll out
         | insider trading" is laughable.
        
           | operatingthetan wrote:
           | >I would argue that their sole value is to make insider
           | knowledge accessible quicker to the general public.
           | 
           | Is anyone using AI to track these audacious and large bets?
           | Seems like you could actually do this to tell which ones are
           | insider info and which are just stupid random bets?
        
             | OutOfHere wrote:
             | I would just count which side of the bet has more bets
             | above the median bet size with a zero or near-zero bet
             | history. Insiders are more likely to use throwaway accounts
             | than are non-insiders. Spoofers may however deter such
             | analysis. AI may not strictly be needed for analysis.
        
               | operatingthetan wrote:
               | I haven't actually used the platforms except looking at
               | betting odds for elections. Do they give any tools for
               | looking at past results and analyzing?
        
           | OutOfHere wrote:
           | Just because an insider bets on something does not in any way
           | make the bet obvious to onlookers until the event is
           | materialized for all to see. There is absolutely no surfacing
           | of intelligence here because big bets are on both sides,
           | winning and losing.
        
         | dvt wrote:
         | Afaik, Polymarket removes predictions that break CFTC's
         | regulations (this includes assassinations, etc., at least in
         | the US). They basically provide no value unless you're an
         | insider, but they do tend to be leading indicators so it might
         | inform some decisions (like: should you keep your money in
         | oil?) that could be contingent on Polymarket predictions.
        
         | SirMaster wrote:
         | I thought the point of them is they are "truth machines" they
         | give a financial incentive for the insider class to essentially
         | share what they know.
         | 
         | The benefit to those outside the insider class are that we now
         | have a better idea of the potential outcome.
        
           | dvt wrote:
           | This is what their argument is, and personally I think it's a
           | pretty good one. But the main issue is that retail is getting
           | fleeced and lives are being destroyed by gambling, so non-
           | professional investors should not be able to use it. Imo, the
           | upside (some fisherman with insider knowledge betting on the
           | Strait of Hormuz) doesn't outweight the downside (a large-
           | scale societal gambling epidemic[1]).
           | 
           | [1] https://www.psychologytoday.com/us/blog/inside-out-
           | outside-i...
        
             | jamal-kumar wrote:
             | I think it's worth noting that my bank lets me ruin my own
             | life too if I want with their own trading platform
        
             | avaer wrote:
             | What are they sharing that they know though? That someone's
             | getting bombed in an hour? That the government is rampant
             | with corruption?
             | 
             | The first seems arguably treasonous. And the latter seems
             | directly supported and funded by these "prediction
             | markets".
             | 
             | If the argument is that prediction markets are truth
             | machines, their social function seems to be support crime
             | on a massive scale and get away with it.
        
               | bostik wrote:
               | Well, that's the entire point.
               | 
               | If we take a completely utilitarian and amoral viewpoint,
               | the insiders are _selling_ their material, non-public
               | information. The rest of the market participants are
               | buying. From the latter 's utilitarian perspective the
               | former are providing a valuable service and getting paid
               | for it. I'm pretty sure there was a legal term for such
               | sales activity...
               | 
               | The only people playing fair are those who don't know how
               | to cheat well enough.
        
         | paulpauper wrote:
         | Anyone can profit from an information asymmetry or mispriced
         | markets--not just insiders with connections. If you are willing
         | do do enough research you can in theory gain such an advantage.
         | This is what some hedge funds do.
        
         | jamal-kumar wrote:
         | Government leaders and political policy advisors, intelligence
         | agencies, hedge funds & quants, and large corporations doing
         | crowdsourced forecasting for sure. That's probably why they
         | haven't just been made illegal - the very policy makers are
         | utilizing the data streams from this to predict the near-future
         | to a decent degree. Companies like Cultivate Labs [1] go into
         | the maths of it all but if you prefer videos Hypermind has some
         | good ones [2] - anyone thinking this is just some degenerate
         | gambler thing and criticizing them on those terms likely has no
         | idea that people are doing pretty serious quantitative analysis
         | on these things, to which use I will leave to your imagination
         | 
         | [1] https://www.cultivatelabs.com/crowdsourced-forecasting-
         | guide
         | 
         | [2] https://www.hypermind.com/master-class
        
       | beaviskhan wrote:
       | You'd have to be spectacularly stupid to bet on these kinds of
       | things without having insider knowledge, because you ought to
       | know good and damn well by now that the people with insider
       | knowledge are DEFINITELY betting on them.
        
         | paulpauper wrote:
         | couldn't you somehow in theory track the order book to if and
         | when insiders are betting and then copy the trade?
        
           | andrepd wrote:
           | Not knowing who are the insiders and who is the dumb flow is
           | like the fundamental problem of hft
        
             | 3eb7988a1663 wrote:
             | How is there enough volume to cover the other side of the
             | bet with these minutes-before trades?
        
               | andrepd wrote:
               | The oil market is, to put it mildly, fucking huge
        
               | 3eb7988a1663 wrote:
               | For sure, the real trading markets are huge. I mean the
               | betting platforms.
        
               | huorricannes wrote:
               | the betting markets offset positions with the real
               | markets. it's all connected
        
               | JumpCrisscross wrote:
               | > _betting markets offset positions with the real
               | markets_
               | 
               | Need a strong source for this. The size (and regulatory)
               | disconnect between the two would seem to make making
               | markets in both a bit silly.
        
               | OutOfHere wrote:
               | Are you implying that there is arbitrage between the
               | prediction market and the real market? Until now we were
               | assuming that the prediction market is self-contained,
               | with its other side staying within the confines of the
               | prediction market.
        
               | huorricannes wrote:
               | the other side can and many times is an arbitrageour
               | which has positions in both the prediction market and the
               | real market
        
               | JumpCrisscross wrote:
               | > _oil market is, to put it mildly, fucking huge_
               | 
               | Sure. But these aren't trades in "the oil market."
               | They're bets on Polymarket and a specific oil-futures
               | exchange.
        
             | iknowSFR wrote:
             | You can trade on non-public information if you obtain that
             | information unintentionally. Now you have to be able to
             | prove it's unintentional if the question came up. A real
             | experience example of this is if you work in an office
             | building and your neighboring company, a public company, is
             | being raided by the FBI. Can you use that information to
             | take a position in the market? Yes, according to multiple
             | attorneys we spoke with.
             | 
             | I bring this up because we assume the trading is coming
             | from insiders but I wonder if the parties behind this have
             | baked in a layer similar to my story above.
             | 
             | To close this back to your comment, and I don't have an
             | answer here: is knowing who the insiders are and acting on
             | that a crime? If you did know and didn't report them, are
             | you breaking a law? Or worse, you reported it to the deaf
             | ears of a regulator that are focused elsewhere or are under
             | resourced to respond now?
        
               | huorricannes wrote:
               | intentionally/unintentionally is not relevant.
               | 
               | it's legal to follow FBI cars and see who they raid so as
               | to make trades. you could even have a hedge fund
               | specialized on this. it's called alternative data
               | 
               | you can even be a regular employer of a public company
               | and trade based on information sent on internal emails.
               | 
               | the only thing illegal is to be a designated insider -
               | typically a restricted group of people with access to
               | sensitive information
        
               | JumpCrisscross wrote:
               | > _you can even be a regular employer of a public company
               | and trade based on information sent on internal emails_
               | 
               | You _absolutely_ cannot.
        
               | Supermancho wrote:
               | "cannot" here meaning it's likely to be prosecuted, not
               | that you _cannot_. You _absolutely_ can.
        
               | anonymars wrote:
               | This interpretation is incredibly unlikely. The first and
               | third paragraphs discuss legality, but the middle one was
               | merely talking about likelihood of prosecution?
               | 
               | Even then it would be inaccurate: do you think the
               | regulators are too stupid to put two and two together
               | that you work for a company and got incredibly lucky with
               | your trade?
               | 
               | Some tips: https://ritholtz.com/2018/08/10-laws-of-
               | insider-trading/
        
             | cout wrote:
             | In theory that is part of what was supposed to have been
             | solved by CAT.
        
               | phrygian wrote:
               | What is CAT?
        
             | paulpauper wrote:
             | insiders would presumably be bigger trades that show high
             | conviction about improbable events. An insider would wait
             | until the last minute to take advantage of low prices of a
             | market close to expiration.
        
           | georgemcbay wrote:
           | For prediction markets you can find out who the insiders are
           | for different categories over time, see for example:
           | 
           | https://x.com/peterjliu/status/2024901585806225723
           | 
           | But there is still the problem of knowing which new trades
           | the insiders made before the bet is settled (maybe solved by
           | being an insider of the prediction market), and also since
           | prediction markets need money on both sides (you are betting
           | against other people, not the 'house') when the insiders make
           | their buy they probably eat up most of or all of the action
           | on the other side.
        
         | 3eb7988a1663 wrote:
         | Even if you are not "betting" similar trades are happening in
         | the stock market as well. Large movements in oil futures
         | shortly before policy changes are announced.
        
         | agumonkey wrote:
         | considering the scale involved, and the OSINT trend, is it
         | possible that people could monitor and correlate stuff like
         | airplane, or us navy activity to deduce when to enter ?
        
           | nathancahill wrote:
           | I saw a tweet about a trader placing an oil bet when they saw
           | two military aircraft turn around on their way to Iran, via
           | transponder. I believe before the deal was announced.
        
             | 3eb7988a1663 wrote:
             | That also sounds easy enough to fake for some plausible
             | deniability.
        
               | huorricannes wrote:
               | in fact US army publicly admitting running a
               | disinformation campaign involving flying planes knowing
               | they would be seen by osint in the previous Iran attack
               | from last summer
        
               | yellow_postit wrote:
               | Just as parallel construction [1] is used by law
               | enforcement to conceal methods and practices no reason to
               | not expect the same for financial gain.
               | 
               | [1] https://en.wikipedia.org/wiki/Parallel_construction
        
         | bluecalm wrote:
         | Same goes for sport betting and yet here we are. People like to
         | bet. They willingly bet on things they have guaranteed
         | disadvantage on (casino games like roulette, slots etc.).
         | People also drink pure poison (alcohol), smoke pure poison
         | (cigarettes) and engage in brain dead activities like speeding
         | and street racing.
         | 
         | Gambling should be judged as any other vice - people get
         | something out of it (rush, hope, whatever) not by rational
         | money allocation standards.
        
         | janalsncm wrote:
         | This was my thought. If these markets continue allowing
         | insiders, it'll drive all of the cash from regular people away.
         | So there will be way less money for insiders to win even if
         | they are allowed.
         | 
         | So the perception of insiders is pretty bad for prediction
         | markets as a business imo.
         | 
         | The sooner they knock off the rhetoric about the "theory"
         | behind prediction markets and start thinking about it like a
         | business, the sooner they will take insiders seriously.
        
       | sieste wrote:
       | Maybe a superhuman AI? /s
        
       | mrtksn wrote:
       | I wonder if this means that in a true free market betting is
       | actually impossible as extra-gaming structures like those
       | spontaneously emerge.
       | 
       | You need centralized regulation to make it work.
        
         | mananaysiempre wrote:
         | The standard argument for prediction markets does not include
         | any kind of fairness in gambling. Rather, the point is
         | precisely to surface insider or otherwise well-founded
         | knowledge of the real odds so they can be available to anyone
         | who wishes to look at the price.
         | 
         | (And I do not see how this first-order viewpoint is
         | problematic, precisely. It's the second-order consequences of
         | people making the currently-considered-unlikely decision in
         | order to cash in on a bet that I have an issue with.)
        
       | reactordev wrote:
       | Prediction Markets require insider trading to function... how do
       | people not know this? It's a setup from day one. If you have the
       | knowledge, you're going to cash in, if you don't have the
       | knowledge, you are throwing your money away.
        
         | DANmode wrote:
         | potentially, each time.
        
         | UncleMeat wrote:
         | I've never seen an ad from either Kalshi or Polymarket that
         | says "don't play if you aren't an insider."
        
           | jjav wrote:
           | The game only works if they also have a lot of people losing
           | money.
        
             | b0Ringmth wrote:
             | Yeah just another Ponzi scheme; one sided extraction with a
             | slight chance of payout that never comes
             | 
             | Stephen Miller and Charlie Kirk were pretty clear their
             | sides whole philosophy is take and never give back. They
             | learned it was OK not from their parents but gen pop
             | sitting on their hands.
             | 
             | The entire economy is Las Vegas now; only the (white) house
             | wins
        
         | firebot wrote:
         | Most gamblers prescribe to the cost sunk fallacy and keep 'one
         | more time'ing it to bankruptcy.
         | 
         | Math wins over your feels every time.
        
           | OutOfHere wrote:
           | If you follow your math, such gambling losers don't really
           | have that much money to bet on an ongoing basis. The ones who
           | support the losing side on prediction markets are the ones
           | who usually do fine, but sometimes are taken by surprise.
        
             | casey2 wrote:
             | Statcon 101: Gambling addicts take loans to gamble, those
             | loans are sold to your pension fund. Who is the loser?
        
             | bigfatkitten wrote:
             | Problem gamblers routinely take out loans, mortgage major
             | assets, max out credit cards, and steal from their
             | employers to fund their habits.
        
         | nojito wrote:
         | >Prediction Markets require insider trading to function.
         | 
         | And yet there are folks like me who have been on them for years
         | before kalshi/polymarket making a very good side income from
         | them without having insider knowledge.
        
       | wslh wrote:
       | I would be careful about attributing all of this to ordinary
       | insider trading. Another plausible explanation is that some
       | activity could come from state linked or intelligence adjacent
       | actors, where the goal is not only profit but also testing or
       | exploiting prediction markets as an auxiliary information
       | channel.
        
         | iambateman wrote:
         | Occam would disagree.
        
           | OutOfHere wrote:
           | The most Occam-safe explanation is not insider trading but
           | actually hard work in analytics to rapidly surface
           | intelligence from X and other alternative data sources.
        
           | huorricannes wrote:
           | occam doesn't work in financial markets.
           | 
           | because if it did you would print money by following occam.
        
       | reenorap wrote:
       | Without them talking about how much people LOST, this entire
       | article is meaningless. With the advent of 0DTE options which
       | dominate options trading, the fact that the notional number of
       | people who made money makes sense because so many more people
       | have lost money.
        
         | watwut wrote:
         | Of course they made money from other traders. But that is
         | precisedly the issue with insider trading - you are taking
         | money from more honest traders.
        
         | jfrbfbreudh wrote:
         | Yes, someone is on the other side of the losing trade, but how
         | many people (not firms) do you know who write contracts for
         | short term options?
         | 
         | I personally don't know any, and I worked at one of the biggest
         | HFT firms for a few years.
         | 
         | The losing side(s) of these positions are heavily hedged, and
         | are happily making money on volume and volatility. (And making
         | record profits this year)
        
       | outlore wrote:
       | There's a recent Patrick Boyle video which puts it aptly:
       | prediction markets are a wealth transfer from retail investors to
       | trading algorithms and people with security clearances.
       | 
       | Anyway, one thing I don't understand yet is how new markets are
       | created. They aren't user generated, so how did an "Iran strike"
       | market exist to begin with?
        
         | 1659447091 wrote:
         | > one thing I don't understand yet is how new markets are
         | created. They aren't user generated, so how did an "Iran
         | strike" market exist to begin with?
         | 
         | Having the US presidents kids as multimillion dollar investors
         | in the platforms and on the advisory board of one them would be
         | a good place to look
        
         | cwillu wrote:
         | https://help.polymarket.com/en/articles/13364541-how-are-mar...
         | 
         | Users absolutely can propose markets
        
       | ChrisArchitect wrote:
       | Related:
       | 
       |  _Traders place $760M bet on falling oil ahead of Hormuz
       | announcement_
       | 
       | https://news.ycombinator.com/item?id=47812385
        
       | yalogin wrote:
       | It's all manipulation and everyone knows it but when the voices
       | are coming from inside the house, who's going to investigate? If
       | anything every tech company in the whole flow is going to support
       | and add custom flows for them - "to get on their good side"
        
       | Stevvo wrote:
       | These articles always focus on "Yes" bets. An insider betting
       | "No" might get by completely unnoticed.
        
       | int32_64 wrote:
       | It's deeply American how so many of these articles about Kalshi
       | or Polymarket frame the issue as something that can be solved on
       | the American end with the stroke of a pen, especially in a
       | multipolar world where American sanctions increasingly fail.
       | 
       | These markets are global with global demand and many of the
       | insiders are on the receiving end of American foreign policy. If
       | an Iranian with a starlink sees a b-2 spirit fly over their house
       | that information will find its way to somebody who will profit
       | from that knowledge, it's just part of the new information
       | economy.
        
         | JumpCrisscross wrote:
         | > _especially in a multipolar world where American sanctions
         | increasingly fail_
         | 
         | You're claiming the U.S. government is impotent against holding
         | Polymarket to account?
         | 
         | > _These markets are global_
         | 
         | The trades in question are bets on Polymarket and
         | Intercontinental Exchange Brent oil futures. These are well
         | within the remit of American law enforcement.
        
           | Mtinie wrote:
           | Why would the U.S. government want to sabotage prediction
           | markets when the chief executive has a vested interest in
           | keeping them legitimate?
        
       | tezza wrote:
       | Wait until they find out how many people place perfectly timed
       | horse racing bets on the winning horse, JUST before the start of
       | the race. 100% of them knew to back the winning horse
        
       | hereme888 wrote:
       | Good for those who made the money. I would have done so had I had
       | such insider info, as long as it didn't compromise any operation.
        
       | slg wrote:
       | Say whatever you want about the merits of prediction markets. But
       | I just don't see a way those benefits outweigh the societal
       | dangers of these constant reminders that people in or close to
       | power can freely profit from their positions in the ways the rest
       | of the population can't. There's always talk about the dangers of
       | disincentivizing job creators, but what happens when a society
       | routinely disincentives job havers in this way? We're just
       | getting a constant barrage of information telling us that if we
       | show up to our job and simply work as we're expected that we're
       | stooges who won't get ahead. You'll need to look for your own
       | individual scheme, ethics be damned, if you just want to keep up
       | with the rest of the population. That's not healthy on an
       | individual level or cumulatively at a societal level.
        
         | colechristensen wrote:
         | I think the bigger risk is changing major decisions (like war)
         | based on the profitability of bets. Forget about drone war
         | doctrine, if you're an adversary just place absurdly large bets
         | which incentivize the opposition to do what you want. (i.e. bet
         | so you "lose" the bet when the enemy changes their posture to
         | gain the profit).
         | 
         | Politics is already full of these pay to play incentives but
         | now anyone with enough cash can influence world events.
        
         | H8crilA wrote:
         | The oil trade structure actually does make sense, because this
         | is how you buy oil, or really any commodity that takes so much
         | space and weight. You order it ahead of time, then if you hold
         | till the contract settles you are allowed to pick it up from
         | the place and in the way designated in the contract
         | specification. In fact you are obliged to pick it up, that's
         | why prices can go negative in exceptional situations.
         | Prediction markets are then just a clean cash-only derivative.
         | 
         | Most of the other prediction markets seems rather stupid to me
         | (they are completely detached from any real world activity),
         | other than their prices being a fairly reliable source of
         | information for bystanders.
        
       | ckemere wrote:
       | Why can't the markets just forbid transactions that happen within
       | 48 hours of resolution?
        
       | elAhmo wrote:
       | It's not perfectly timed bets, it's called insider trading.
       | 
       | Just one more thing this administration has brought into
       | mainstream.
        
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