According to Better Markets, trading that involves election manipulation can significantly impact the pricing of contracts. This manipulation can lead to volatility in the market, ultimately harming smaller retail investors.
Recently, Better Markets called on the U.S. Court of Appeals to overturn a decision that allowed Kalshi to offer election markets. They argued that such trading practices could distort the pricing of contracts, making them detached from election fundamentals.
It is crucial to address market manipulation to ensure fair and transparent trading practices. By preventing manipulation, we can protect investors and maintain the integrity of the market.
