In both cases, someone adept at parsing prediction markets could have known that something was up. “It’s possible to spot these bets ahead of time,” Rajiv Sethi, a Barnard College economist who studies prediction markets, told me. There are some telltale behaviors that could help distinguish a military contractor betting off a state secret from a college student mindlessly scrolling on his phone after one too many cans of Celsius. Someone who’s using a newly created account to wager a lot of money against the conventional wisdom is probably the former, not the latter. And spotting these kinds of suspicious bettors is only getting easier. The prediction-market boom has created a cottage industry of tools that instantaneously flag potential insider trading—not for legal purposes but so that you, too, can profit off of what the select few already know.
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