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Spotify pulls more than 500,000 streams after Kalshi-linked manipulation concerns
The Apex Times

THE APEX TIMES

Business/The Apex Times/Jul 3, 12:37 PM EDT

Spotify pulls more than 500,000 streams after Kalshi-linked manipulation concerns

The streaming platform removed streams tied to Malcolm Todd’s “Earrings” after it concluded they were not from genuine listeners following suspicious trading activity on the prediction market Kalshi, according to reports quoting a Spotify spokesperson.

Spotify has removed more than 500,000 streams from Malcolm Todd’s chart-topping song “Earrings” after detecting activity it says was not driven by genuine listeners, following reports that suspicious bets on the prediction market Kalshi were linked to the track’s sudden rise.

The issue came to light after “Earrings” surged on Spotify’s U.S. streaming chart, jumping roughly 70% overnight before topping the chart, CBS News reported. Spotify later took steps to delete the streams as its monitoring systems flagged the behavior.

In a statement to CBS News, a Spotify spokesperson said all streaming services face changing stream manipulation tactics, and that Spotify has “best in class detection and mitigation practices for manipulated streams.” The spokesperson added that Spotify “doesn’t pay out associated royalties” for the streams it removes.

CBS News also reported that Spotify told it the streams tied to “Earrings” were not from genuine listeners after the company found suspicious betting activity connected to the song on Kalshi.

Kalshi is investigating, according to the same CBS News report. A Kalshi spokesperson told CBS News that the company is “in touch with Spotify” as it reviews what happened.

The episode arrives amid broader scrutiny of prediction markets, platforms that allow people to place bets on outcomes. Critics have raised concerns about whether such markets have enough guardrails against manipulation and misuse, including the risk that someone with inside knowledge or the ability to influence an outcome could profit.

In the CBS report, the potential integrity problem is framed as part of a wider pattern facing the ecosystem. The story noted earlier controversy around prediction markets and referenced regulatory oversight by the U.S. Commodity Futures Trading Commission, which is tasked with regulating such markets.

What Spotify did not publicly disclose in the reporting was the specific mechanism by which the stream manipulation was carried out, the size of any suspected bot network, the timing of when bets were placed relative to the chart movement, or whether Spotify pursued any enforcement action beyond stream deletion and royalty adjustments. Those details remain unclear from the information available in the coverage.

Why It Matters

  • Chart fraud and payment disputes can quickly become platform risk when artificial engagement affects music rankings and the economics around streaming.
  • Prediction markets are increasingly used as settlement or announcement mechanisms, but episodes like this raise questions about how easily outcomes can be influenced or gamed.
  • Spotify’s comment that it does not pay out royalties for manipulated streams suggests streaming platforms may seek to contain financial impact even when public-facing charts are temporarily disrupted.
  • The incident could intensify pressure on exchanges and related platforms to improve integrity controls and on regulators to evaluate safeguards for betting-linked content outcomes.

Sources

Key Facts

  • Spotify removed more than 500,000 streams associated with Malcolm Todd’s “Earrings.”
  • The removals followed concerns that suspicious betting activity on the prediction market Kalshi was tied to the song’s chart rise.
  • Spotify said it believes the removed streams were not from genuine listeners.
  • A Spotify spokesperson said Spotify has detection and mitigation practices for manipulated streams and does not pay out associated royalties for those removed streams.
  • Kalshi said it is investigating the matter and is in touch with Spotify.
  • The episode reflects ongoing debate about safeguards on prediction markets and the risk of manipulation.

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Spotify pulls more than 500,000 streams after Kalshi-linked manipulation concerns | The Apex Times