UMA token holders decided Strategy’s late-May bitcoin sale should apply to June’s contract, costing May bettors despite the transaction occurring before month-end.
Polymarket resolved a dispute over Strategy’s bitcoin sale by ruling the May 31 contract as “No” and the June 30 contract as “Yes.” The decision followed a vote by UMA token holders, who determined the June 1 disclosure date took precedence over the May 26-31 sale period.
The controversy arose after Strategy sold 32 bitcoin in late May, its first sale in over three years. Bettors who wagered the sale would occur by May 31 argued the transaction met the deadline, while others contended the June 1 disclosure disqualified it. UMA voters, including large holders linked to Risk Labs, sided with the latter.
The ruling resulted in losses for May contract bettors, despite the sale occurring within the month. The dispute highlighted ambiguities in prediction market resolution tied to public disclosure timelines.