Polymarket rules No on Strategy bitcoin sale, 98.6% UMA vote

A decentralized prediction market has finalized a disputed contract with a "No" outcome after a company's sale of bitcoin, sparking significant backlash from traders and raising questions about governance and rule interpretation in such platforms. The market on Polymarket asked whether the company Strategy would sell any bitcoin by May 31.

The controversy began when Strategy disclosed in a June 1 regulatory filing that it had sold 32 bitcoin between May 26 and May 31, generating approximately $2.5 million to fund preferred stock distributions. This marked the company's first reported bitcoin sale since December 2022. Traders who had wagered "Yes" argued the sale clearly occurred before the contract's deadline.

However, the market's resolution process ultimately ruled the outcome as "No." The dispute centered on whether the contract should be settled based on when the sale occurred or when it was publicly confirmed. Polymarket added a clarification during the review process stating that "confirmation achieved outside of the market’s time frame does not qualify." This interpretation became central to the final ruling.

The dispute was escalated to a final review governed by holders...