Polymarket "Trump" Dumper

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Polymarket trader, larpas, dumped $3M worth in Trump shares on Polymarket’s “Presidential Election Winner 2024” market, sending Trump odds down by 2% before it recovered back to 58%. Alongside this sale, they also dumped various other positions betting on a Republican President, Republican victories in specific states as well as those betting on a Kamala defeat.

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This sharp volatility highlights the liquidity constraints that still exist within on-chain prediction markets compared to traditional finance. Although Polymarket has grown, a concentrated sell order of this magnitude can temporarily dislocate prices. The quick recovery, however, indicates a healthy market where arbitrageurs are standing by to absorb liquidity and correct perceived mispricings.

The sale is suspected to have been triggered by a tweet from legendary trader GiganticRebirth (GCR), where he discussed taking profits on his Trump position and related proxy bets for the elections, after capturing the “meat of the move”.

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The market’s reaction underscores the outsized influence of 'whale' wallets and legendary figures like GCR in the crypto ecosystem. In prediction markets, price discovery is often a mix of real-world polling data and the reflexive trading behavior of crypto natives. When a trader known for high-conviction plays signals an exit, it often forces other participants to reassess their leverage and risk exposure.

Predictions market, Polymarket, is one of the largest beneficiaries of the US Presidential Elections, having seen a tremendous influx of volume onto the platform. Monthly volumes on the Polymarket have increased from the low millions to $250-350M in the second half of 2024, with October seeing $1B in volume. Similarly, total value locked on the platform has also increased 48x since the beginning of the year to 456M.