BackPack token TGE plunges 25% amid allegations of market manipulation; official response: Polymarket’s predictions about large holders have nothing to do with us

Backpack Official Post on 3/25 Reveals External Traders Attempted to Manipulate the Market: They tried to buy up in the spot market and push up the BP price to profit from the “BP FDV exceeding $200 million” prediction on Polymarket. An investigation confirmed the operator was not an insider, and the platform declared zero tolerance for any form of market manipulation.
(Background: Backpack’s anti-witch hunt targeting “Chinese users”? Officially launched complaints and buyback compensation)
(Additional context: Polymarket and Kalshi join forces to ban insider trading, with Congress proposing legislation to fully regulate prediction markets)

Backpack’s official post on 3/25 disclosed a cross-market manipulation incident: a trader repeatedly bet on the “BP FDV exceeding $200 million” prediction on Polymarket, with the token price threshold set at $0.20. At that time, BP spot price was stuck at $0.19. The operator then heavily bought in the spot market, attempting to push the price above $0.20 to win bets on Polymarket.

The operator was not an insider; official declares zero tolerance

After an internal investigation, Backpack confirmed that the operator was not affiliated with the project—not an employee, director, executive, or advisor. The official statement: “We have zero tolerance for any form of insider trading or market manipulation.”

Polymarket updated platform rules on the same day, explicitly banning three types of manipulation behaviors and tightening controls over violations in prediction markets.

BP Token TGE fell over 25% after launch

BP tokens completed TGE on 3/23, opening at $0.31, with a FDV of $3.1 billion. The highest price during trading was $0.3771, but it then continued to decline, dropping over 25%. Before the incident, the probability of “BP FDV > $200 million” on Polymarket once reached 87%.

Backpack emphasized that this TGE had a “0% allocation for insiders,” but the anti-witch mechanism controversy continues, with many Chinese users reporting misjudgments. The official has initiated complaint and buyback compensation mechanisms.