Polymarket Traders Hit as Trump’s “TACO Trade” Wrecks Greenland Bets

Traders on the prediction market Polymarket experienced substantial losses when President Trump unexpectedly canceled proposed tariffs and abandoned the possibility of acquiring Greenland. This reversal triggered a collapse in the value of bets placed on a 'Yes' outcome for the question, “Will Trump acquire Greenland before 2027?” Some traders lost tens of thousands of dollars, with drawdowns reaching 40-50% for top holders of the 'Yes' position. The situation highlights the volatility of prediction markets tied to political events and the cyclical nature of the “TACO trade” – a strategy based on Trump’s pattern of making threats and then backing down. Despite the losses for some, the reversal also contributed to a rally in crypto markets, with total market capitalization increasing by 1.5% as investor sentiment improved.

(Source：BeInCrypto)