A trading bot making cheap uniform trades on a Zohran Mamdani Kalshi market has stopped trading after it raised suspicions that the prediction market was wash trading its perp volume.
The wash trading allegations began last weekend when “Beni,” a pseudonymous quant analyst, claimed Kalshi’s 24-hour trading volume of ether perpetual contracts was $539 million, while open interest was just $3.1 million.
They also flagged a series of $5,500 trades that supposedly made up for 58% of Kalshi’s ETH perp volume across four days.
Kalshi’s crypto lead, IcoBeast.eth, aggressively rebuffed Beni’s claims, and now Kalshi has posted its own article in which it attempts to debunk the argument and claim the “wash trading rumors are false.”
Read more: Kalshi won’t let you bet on its Supreme Court outcome
Kalshi bot is no longer making strange uniform trades
One specific bot was reportedly trading the 2028 Democratic Presidential Nominee market, specifically on Mamdani’s ticker. This is despite the fact that Mamdani can’t be the presidential nominee due to him not being born in the USA.
Prediction market analyst TickerTracker compared the bot’s activity to a metronome as it bought shares for two tenths of a cent before selling them for one tenth of a cent repeatedly every four seconds across almost two months.
Today, analysts noted that it stopped trading after the continuous back-and-forth trades.
Read more: CFTC orders Kalshi to continue operations amid New York lawsuit
Prediction market tool firm Resolve even claimed to have made around $30 a day counter-trading the metronome bot.
Some users have suggested that the trades might just be a bug, while others suggested that the bot might be “someone farming volume for a higher rate limit tier.”
TickerTracker noted that notional volume within prediction markets can often be inflated, and automated trading can be an ordinary occurrence.
They added that while these trades might break Kalshi’s rules, “Maybe there’s a simpler explanation for these anomalies that we’re overlooking?”
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