Polymarket faced a serious security breach this Thursday on its web interface after a malicious script injected through a third-party vendor compromised user wallets, draining nearly $2.6 million dollars. Minutes later, a wave of reports regarding unauthorized transfers and forced liquidations flooded the market.
Polymarket has seen 995 accounts drained by a hacker, for $2,654,211.42. Largest losses were 341k and 307k
Hacker has converted all funds to POL (most likely to avoid freezing) https://t.co/HIBv6hOtPI pic.twitter.com/PjT2QhgBSa
— Conor (@jconorgrogan) October 29, 2026
Alarm bells rang across the DeFi ecosystem and prediction markets, highlighting the evident fragility of frontend layers and third-party dependencies. Although the smart contracts remained untouched, the attack directly impacted trader confidence right in the middle of the protocol’s operational expansion phase and record-breaking volume.
The Polymarket team isolated the vulnerability, temporarily pausing relayer operations and confirming that it will fully reimburse the stolen balances to the affected accounts while the forensic audit concludes.
Source: https://x.com/jconorgrogan/status/2115872225144271131
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