TikTok briefly went offline in the US last weekend, anticipating a ban. However, it returned just hours later, saying the law wouldn’t be enforced. This situation upset some Polymarket users who had bet that TikTok wouldn’t be banned before May 2025.

Users on Polymarket had wagered nearly $120 million on whether TikTok would face a ban in the US before May 2025. When TikTok stopped working for US users on Saturday night, it seemed like the answer was clear. The company stated that it had gone dark because a law banning TikTok had been enacted.

Those who bet "yes" on Polymarket were declared winners. UMA, a decentralized finance protocol that resolves disputes on the platform, confirmed this outcome. Yet, some users were furious about the result.

The law wasn’t set to take effect until Sunday, the same day TikTok came back online, referencing comments from incoming president Donald Trump. Critics argue this means TikTok was never actually banned.

A petition on change.org stated, “While the law banning TikTok was upheld and signed into power, its enforcement has been delayed by Biden’s administration and execution was passed onto Trump’s administration.” This suggests that TikTok continues to operate due to ongoing negotiations.

Comments on Polymarket included accusations of a "scam," highlighting the platform's challenges in managing disputes fairly. The outcomes of significant bets are determined by a group of token holders through game theory. This led to claims that UMA token holders might have biased outcomes in their favor.

UMA token holders vote on factual questions, believing that collective wisdom yields the best results. UMA calls itself a “decentralized truth machine.” Votes are anonymous and revealed only after the polling ends. If a majority votes that a statement is true, those who voted otherwise face penalties, discouraging false claims.

While UMA has resolved thousands of disputes successfully, it has faced criticism for some decisions. In June, Polymarket criticized UMA’s ruling regarding a token linked to Barron Trump, stating it would refund some bettors and implement changes to maintain marketplace integrity. It’s unclear if any adjustments have been made since then.

In a previous incident, users were unhappy when UMA declared that the US Coast Guard had “found” the Titan submersible, which had imploded in the Atlantic. While some pieces were recovered, the cabin was not, as specified in the bet's details.

In 2024, US lawmakers voted to ban TikTok due to concerns about the company sharing sensitive data with its parent company, ByteDance, based in China. The law prohibited US companies from providing TikTok services unless ByteDance sold the platform to an American firm.

TikTok preemptively took itself offline, and the app was removed from major app stores. However, on Sunday morning, Trump announced he would sign an executive order ensuring “there will be no liability for any company that helped keep TikTok from going dark.” TikTok quickly returned online, and it seems the Biden administration did not take action against the company for violating the law.

While users who had downloaded TikTok before Sunday can still access the app, it has not returned to app stores. Legal experts question Trump’s authority to override laws passed by Congress.

On Discord, UMA members stated that the outcome of the $120 million market was clear. A law effectively banning TikTok had been passed and took effect on Sunday. The enforcement status was seen as irrelevant. One member compared it to illegal actions that remain possible despite being against the law.

Conversely, some argued that the lack of enforcement meant the ban hadn’t “gone into effect,” according to the language of the Polymarket bet. Allegations arose that influential UMA voters placed bets on Polymarket, a claim that a UMA representative denied. They pointed out that many significant voters are staff members prohibited from betting.

Despite this, frustrated bettors flooded the comments section on Polymarket, demanding an investigation into the UMA vote. As of Friday morning, their petition had garnered 77 signatures.