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Spotify removes 500K streams
Spotify removed 500,000 streams from Malcolm Todd’s viral hit "Earrings" after an internal investigation found manipulation through artificial streaming.
“Kalshi and prediction market sector embroiled in mixed bag of legal fights across U”
The stream removals pushed "Earrings" down to fourth on the Spotify charts, and Spotify said, "we don’t pay out associated royalties," while a Spotify spokesperson described its detection and mitigation practices for manipulated streams.
WIRED reported that Kalshi trader Caleb Davies had been agitated about what he claimed was a bot-fueled effort to manipulate Spotify-related markets, and he told WIRED, "Every single morning, I’m going in, downloading the data, and updating my projections," as he built evidence.
Davies’ concerns centered on prediction market traders botting Spotify charts to influence related event contracts, and Spotify confirmed to WIRED it investigated incidents Davies flagged and found evidence of artificial streaming.
Kalshi, Polymarket disputes
Kalshi spokesperson Elisabeth Diana told WIRED, "We're in touch with Spotify and are actively investigating this matter," after Spotify adjusted its charts to account for the discrepancy and culled over 500,000 artificial streams.
WIRED also reported that at the Swedish streaming giant’s request, Kalshi removed Spotify’s logo from its markets that relate to the company and adjusted language that initially suggested Spotify had verified chart results.
Polymarket spokesperson Annabel Walsh said, "It’s actually not plausible since we didn’t even have Malcolm Todd as an option on this Spotify market," rejecting Davies’ theory that Polymarket traders profited from the fraud.
In the same WIRED account, Kalshi’s head of enforcement Robert DeNault told Davies that only Spotify could definitively confirm whether it had been botted and floated the possibility that Kalshi traders were copying peers’ activity on Polymarket.
Prediction markets face legal fights
Beyond the streaming dispute, Kalshi and Polymarket faced legal battles as states advanced taxes and Congress proposed new restrictions, including a Michigan judge-approved temporary restraining order requiring Kalshi to halt offering contracts on sporting events in the state.
The Gambling Insider roundup said the order came in Attorney General Dana Nessel’s lawsuit against Kalshi, and it warned the company could face daily fines if it failed to comply with geolocation requirements.
In parallel, the same roundup said Polymarket sued Attorney General Raúl Torrez and state gaming officials in federal court in New Mexico, arguing New Mexico’s refusal to delay enforcement created an immediate threat of enforcement against Polymarket.
CoinDesk framed the broader stakes as a jurisdiction fight over whether users are gambling or purchasing derivatives, and it quoted New Jersey Solicitor General Jeremy Feigenbaum saying, "This issue is tremendously important," as the dispute moved toward the U.S. Supreme Court with Justice Samuel Alito granting an extension to Aug. 4, 2026.
