Polymarket Suspends Trading After $1.4M User Drain Reports

All new trading on Polymarket was suspended on Thursday, coming 20 minutes after a trader reported losing $800,000 from his account and cautioned that others were affected. The platform has not stated if a hack occurred.

While the freeze remains in place, users holding open positions are able to cancel pending orders, but cannot execute new trades. The trader indicated that a friend lost an additional $600,000, putting total reported losses at $1.4 million.

Has Polymarket Been Hacked?

The trader, known on X as Car, issued a warning at 17:45 UTC for users to secure their accounts.

“If you are a Polymarket user, lock down your account. I just got drained $800,000. Other accounts are also affected. Friend got drained $600k. Please be careful dont interact with the site,” they said.

A subsequent post from the trader stated that all of his positions had been sold.

All my positions were soldhttps://t.co/TSGAY2yEw0

— Car (@CarOnPolymarket) October 29, 2026

A major outage was flagged on Polymarket’s status page at 18:05 UTC. The platform stated that it had shifted to cancel-only mode as the company looks into an unspecified incident.

The relayer system on Polymarket was also halted. As per the platform’s developer documentation, that system is responsible for sending token transfers and spending approvals for users’ Polymarket wallets.

The company has not linked the outage to the claims of funds being drained. No cause, number of victims, or total loss amount has been disclosed. BeInCrypto was unable to independently confirm the $800,000 and $600,000 figures.

Polymarket’s Handling of June’s $3 Million Website Attack

According to reports, in June attackers altered code from a third-party vendor that was running on Polymarket’s website.

The compromised site prompted some users’ wallets to authorize transfers to the attackers. Approximately $3 million in pUSD, the dollar-pegged token used as Polymarket’s new trading collateral, was drained from fewer than 15 accounts.

User funds were held in smart contracts that were not breached. Polymarket subsequently committed to reimbursing all affected users.

“We are refunding affected users in whole, there are no user ‘losses’,” said William LeGate, Polymarket head of experience.

As of now, Polymarket has not made a similar commitment regarding Thursday’s incident.

The trading halt comes two days after Predict.fun, a competing prediction market, suffered a $400,000 loss to attackers. Two reports of fund drains in a single week have placed the security of these platforms, beyond just their market outcomes, under scrutiny.

The next status update from Polymarket will indicate if the June refund playbook is being utilized again.