Spotify demotes hit song after removing 500k fake streams

Spotify has confirmed a case of streaming fraud and demoted a hit song after an investigation found evidence of coordinated manipulation linked to prediction market betting. The streaming service removed more than 500,000 artificial streams that had propelled Malcolm Todd's song "Earrings" to the top of its charts, according to company statements and reports this week.

The manipulation is alleged to have been an attempt to influence the outcome of bets on platforms like Kalshi and Polymarket, which offer markets tied to music chart performance. Spotify contacted both companies after identifying the problem, requesting they remove its logo and clarify they have no partnership with the streaming service. Kalshi is investigating the matter. A Polymarket spokesperson said the allegations were "not plausible" because Malcolm Todd was not an option on its specific Spotify market.

The suspicious activity was first flagged by prominent prediction market trader Caleb Davies, who publicly criticized Kalshi's handling of the issue. Davies calculated astronomical odds against the song's sudden rise, suggesting artificial means. His complaint prompted Spotify's investigation, which confirmed...