Web3's Most Outlandish 2025: When Markets Turn Into Manipulation Playgrounds

The Web3 industry has always been home to bold moves and unexpected turns, but 2025 might just be the year that tested everyone’s trust to the limit. From coordinated schemes draining nine-figure sums to oracle manipulation that challenged reality itself, this year revealed just how vulnerable decentralized systems can be when bad actors get creative.

The $100 Million Political Meme Coin Heist

Perhaps the most striking case involved a mystery team orchestrating a political meme coin scheme that drained over $100 million from the market. This wasn’t a simple rug pull or flash loan exploit—it was calculated market manipulation at scale. The perpetrators maintained strategic control over the token’s narrative and mechanics, systematically siphoning liquidity while maintaining enough facade to keep retail participation flowing. The incident exposed how easily narrative-driven assets can become vehicles for large-scale theft when governance structures are weak or absent.

The Trusted Insider Threat: Infini’s Embezzlement

Adding insult to injury, an internal actor at Infini allegedly embezzled nearly $50 million, shifting the conversation from external threats to something more unsettling: trust within teams. The incident underscored that decentralization doesn’t eliminate institutional risk—it sometimes just relocates it. When billions flow through protocols with limited oversight, even single bad actors can cause catastrophic damage.

Oracle Manipulation Takes Center Stage

Perhaps the most intellectually troubling event was a UMA whale’s manipulation of Polymarket’s oracle system. By influencing price feeds, the whale essentially tried to alter recorded reality on-chain. This exposed a critical vulnerability: prediction markets are only as reliable as their data sources. A single well-capitalized actor could bend truth in a market designed specifically to reflect it.

Other Shocks That Shook Confidence

The year wasn’t short on other dramatic moments. TUSD’s reserve fund dispute raised questions about stablecoin collateralization. Zerebro’s co-founder staged a mysterious disappearance that sent shockwaves through the community. Meanwhile, Conflux attempted a reverse shell listing that ultimately failed, highlighting the regulatory headwinds facing blockchain projects.

What These Outlandish Events Reveal

Collectively, these incidents paint a picture of an industry still grappling with three fundamental challenges: establishing trustworthy governance, managing regulatory pressure, and building systems resilient to both external manipulation and insider threats. Web3 in 2025 proved that innovation and mayhem are still uncomfortably close neighbors—and the space still needs better guardrails.