Polymarket halts trading after third-party provider compromise drains over $2.5 million

Polymarket paused trading after attackers drained over $2.5 million through a compromised third-party provider. The exchange is in cancel-only mode, and users are promised compensation. The incident highlights risks in the prediction market sector, where third-party dependencies can expose funds. Polymarket has not yet specified a timeline for resuming full operations or details of the compensation plan.