Polymarket modifies settlement rules, resulting in a $3.8 million position being cleared to zero

Polymarket, a predictive market platform, has released a settlement clarification overturning established market results, resulting in a student's $35000 bet being invalidated and a total of $3.8 million in positions involving 1838 accounts being cleared. This clarification clause allows for explanatory revisions to market settlement results after the fact, altering the final compensation outcome. According to Cryptobriefing, this incident originated from a case that was publicly disclosed on June 13th, and the market results were reversed due to rule interpretation after settlement.