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Polymarket POL Drain: Private Key Compromise

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Polymarket experienced a rapid POL drain on May 22, initially sparking fears of a smart contract exploit. However, the team swiftly clarified that the incident stemmed from a private key compromise, not a contract breach. User funds and market resolutions remained unaffected. The event underscores the importance of robust key management in DeFi protocols, though the prompt response and containment mitigated broader market impact. While the incident highlights operational risks, the lack of contract vulnerability and preserved user assets suggest a contained event with limited systemic implications.

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