Polymarket Trading Disrupted After Users Report $2.6M in Losses

Polymarket was forced to temporarily restrict trading on Thursday after a security incident reportedly drained millions of dollars from user accounts. The platform subsequently said it had identified and fixed the problem, which originated from a compromised external service rather than its core infrastructure. The first signs of potential trouble emerged hours ago when multiple users reported unauthorized activity on their Polymarket accounts. As the situation developed, the company put its international exchange into cancel-only mode, meaning users could remove existing orders but couldn’t submit new ones or execute new trades. The team also paused Relayer activity while it investigated.