Spotify has removed more than 500,000 streams from Malcolm Todd’s song Earrings after finding artificial streaming activity that affected its US chart position.
The track had briefly risen to No. 1 on Spotify’s daily US chart after a reported 70% surge in streams during the final days of June. Following Spotify’s review, Earrings fell to fourth place.
The case has drawn attention because the chart movement coincided with trading on prediction markets tied to music outcomes.
Kalshi and Polymarket have offered markets allowing users to trade on chart-related events, including which artists or songs would top Spotify rankings.
Spotify said: “All streaming services face ever-changing stream manipulation. Spotify has best-in-class detection and mitigation practices for manipulated streams and we don’t pay out associated royalties.”
The artist is not believed to have been involved in the activity, according to reports cited in the source material.
The incident shows a pressure point for prediction markets as they expand beyond politics and sports into entertainment, culture and real-world performance metrics.
Markets based on chart rankings, award results or platform data can create incentives for traders to influence the underlying outcome rather than simply predict it.
That risk is already central to the wider debate around prediction market operators. Kalshi has argued that its event contracts fall under federal commodities oversight, while several state gaming regulators have taken the position that sports-related contracts can amount to unlicensed wagering.
Polymarket has also faced scrutiny over market integrity questions as trading volumes and public attention have increased.
Spotify has reportedly asked Kalshi and Polymarket to remove Spotify logos from their websites to avoid any implication of a commercial relationship. Kalshi and Polymarket are reviewing the claims, according to the source material.
The dispute comes amid broader regulatory pressure on Kalshi. Earlier this year, the Michigan Gaming Control Board withdrew from the National Council on Problem Gambling after the organisation entered into a partnership with Kalshi. The regulator argued that the alliance undermined responsible gambling messaging while Kalshi continued to challenge state regulators in court.
Spotify said it does not pay royalties on streams it identifies as manipulated
