The examples didn’t look like they’ve completely emptied the orderbook
replyBecause there's always some uncertainty and capital limits. But the uncertainty about the outcome is itself inside info, and that's compounded with your own uncertainty about the insider as a copy trader. So the insider will empty out certain price levels only, and your certainty is strictly less than theirs, meaning you have even fewer viable levels to buy.
reply> Similar story for lower levels of confidence
replytherefore, the polymarket betting odds will reflect the truth - even if that info is a secret that nobody else but the insider knows. And if this is the case, then even an outsider could make use of the odds as a source of info which would ensure that market efficiency (which is about the flow of information) is high.
So what's wrong with insider trading again?
That someone with inside information will e.g. make 500% while those late to the party e.g. only get 10%? (of course your example is not very realistic to begin with)
replySo is any kind of business illegal? Making investments?
replyIt rewards blatant corruption? What's the benefit is the bigger question.
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