Infamous Poyo returns, profiting from invalid market creation
Augur is a permissionless prediction market platform, allowing any user to create derivatives markets and any user to buy and sell shares in those markets. On Feb. 2, ether locked in Augur reached an all-time high of 14,632: open interest has since fallen by ~72%.
This week it emerged that the notorious Augur user Poyo has been exploiting a bug in the platform’s smart contracts. Readers may recognize Poyo from the infamous ‘House of Representatives Midterms’ market, which eventually took five dispute rounds to resolve.
The exploit works as follows: