Spotify removes 500,000 fake streams after $3M bet

Spotify removed 500,000 fake streams from Malcolm Todd’s song after a $3M prediction market bet, raising concerns over market-driven chart manipulation.

Spotify recently removed over 500,000 fake streams from Malcolm Todd's song "Earrings" after it topped the US charts. The manipulation was linked to betting activities on prediction markets, particularly on the Kalshi platform, where traders wagered on which song would receive the most streams in June, with a total trading volume reaching $3 million. Kalshi settled the bets and declared Todd the winner before Spotify completed its investigation. After uncovering the manipulation, Spotify requested that Kalshi and Polymarket remove its branding and clarify that there is no partnership. Kalshi stated it is cooperating with the investigation, while Polymarket has not responded. This incident has raised concerns about prediction markets incentivizing chart manipulation, as traders who buy contracts at low odds can reap significant profits. Spotify also announced it will not pay royalties for fake streams. Following the news, Spotify's stock price rose by 2.86%.