Cross-Platform Latency Arbitrage on Bot Malware Events

The malware campaign targeting Polymarket bot cloners creates asymmetric latency and pricing gaps compared to other prediction platforms like Kalshi or PredictIt. When an infected bot incorrectly prices a contract on Polymarket, the same contract on other platforms may still reflect correct market-implied probability for several seconds. Entry is triggered by detecting a price deviation >1.5% between Polymarket and the cross-reference market. The arb is executed within 500ms using colocated infrastructure. Positions are held until convergence or a 0.8% net profit after fees. The 2026-07-06 report documented the feasibility of this strategy with sample arbitrage opportunities averaging 2.1% for 12 seconds. Requires multi-exchange API keys and low-latency execution setup.