Denys

Kalshi finally responsed to the fraud allegations ! they directly address claims by @beniduboss and @OctopusTakopi about wash trading on their platform here are their main points : 1) cause of the $5500 buys "the fixed trade sizes are caused by one maker placing exactly $5500 to clear the minimum order size requirement of his Market Making agreement. Takers are all buying his orders which is why half of trades have the exact same size" The MM agreement point make sense, such agreements exist and MMs are often required to keep orders above a certain fixed minimum size to get rewards. that still does not explain why takers match that amount every time. If taker buys for less than $5500 or if the taker order is split among more than one resting it should be a partial fill which which would result in a different trade size. 2) Market Makers fee structure "self clearing MMs don't pay fees because we declared a Fee Holiday. Their fees are fully rebated but they can't be positive on a trade-per-trade basis" There Kalshi completely sidesteps the point. The point that @beniduboss made was that net 0 fees meant MMs paid no penalty for wash trading. Kalshi answers that MMs don't get additional payment for wash trading, which was never the accusation. 3) Prediction market manipulation "nothing we’ve seen has anything to do with Kalshi’s Predictions platform..." they have chosen to ignore the finding of @danielsapkota on circular trading in their Prediction Markets So overall there are one or two interesting points but it's not an exhaustive rebuttal. and we still don't know why their perps do 60x more volume per $ of liquidity than @HyperliquidX