Polymarket Restores Trading After $2.65M Exploit Linked to Compromised Third-Party Provider

TL;DR: Amount stolen: On-chain data and reports from The Block indicate that attackers drained approximately $2.65 million across more than 700 affected wallets. Attack vector: The breach originated in the monitoring library of a third-party web performance vendor (DebugBear), which introduced a malicious script into the frontend. Technical and financial response: The protocol activated “cancel-only” mode at 18:05 UTC on October 29, 2026, and confirmed full reimbursements for affected users. This Thursday, October 29, Polymarket restored its exchange operations after resolving a security incident that compromised $2.65 million in user funds. Trading is now fully back online. We’ll make this right and are fully reimbursing all affected traders. — Polymarket Traders (@PolymarketTrade) October 29, 2026 The temporary outage began when the company placed its matching engine into “cancel-only” mode .

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