Microstrategy polymarket insiders have the opportunity to do the funniest thing: using their position to manipulate financial markets for a huge profit.
Details below âŹïž
Yesterday a bunch of obvious insiders (clean accounts, trade only one market, huge size) front-ran the MicroStrategy announcement by trading prediction markets related to a BTC purchase by the company.
See these accounts for more details:
https://t.co/mvRf253IPE
https://t.co/6mGyu63Ivo
https://t.co/YjHP9WQIjm
https://t.co/YkRPBNBgu5
https://t.co/xrz4W9NXrC
https://t.co/Ji19UcBod0
https://t.co/8qynHIpiQz
https://t.co/GQMnIeRVrO
They all made a decent amount of money, a few tens of thousands of dollars.
But they could go for a much bigger payday.
Profit from inside trading MicroStrategy markets on Polymarket is limited by the thin liquidity. If they want to win big they have to find a deeper market.
Now that they are identified as Microstrategy insiders, all eyes are on them. Millions of traders are looking for their next move.
They can take advantage of this by faking an inside trade. A MicroStrategy BTC purchase announcement doesnât have much effect on bitcoin price. But a MicroStrategy liquidation would be catastrophic for bitcoin and the price would freefall.
The process is simple.
1. MicroStrategy insiders open a huge fat short (leveraged) position on Bitcoin.
2. MicroStrategy insiders aggressively buy âYesâ contracts on this market:
https://t.co/Evf6vCVoFo
They should be able to âcleanâ the sell-side of the orderbook with ~30k$.
If they want the message to be crystal clear, they can also buy all the available âYesâ contracts on these markets:
https://t.co/h8yZxGXtPn
https://t.co/YdsyjGMdsI
3. At that point crypto traders would panic and sell their bitcoin holdings fearing Saylor's liquidation. Futures traders would open large short positions to try to profit from the move. The price would plunge.
Itâs time for MicroStrategy insiders to close their short position on Bitcoin and take profits.
If they want to optimize, they can now buy BTC (preferably spot) to also profit from the move up, when the market will realize that MicroStrategy will not really be liquidated.
Finally, they sell their "Yes" contracts to what's left of the liquidity in prediction markets.
This tactic should be highly profitable. If I were a malicious actor, I would try to buy those accounts and execute it. But Iâm not, and all of this is probably illegal everywhere.
Donât do this at home.
Living 4 bedroom rent free the Zeller brain while we don't even know the guy.
He's definitely not trying to "safeguard the best interests" of the DeFi industry.
But nothing new here.
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đ Aujourdâhui on se retrouve pour parler dâun projet que certains osent appeler âle prochain Bittensorâ