Spotify Removes 500,000+ Artificial Streams From Hit Song After Suspicious Kalshi Betting Activity
The controversy emerged after Kalshi users noticed unusual bets on who would top Spotify's U.S. chart
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Spotify has removed more than 500,000 artificial streams from singer-songwriter Malcolm Todd's track Earrings after identifying suspected streaming manipulation linked to unusual betting activity on prediction market platform Kalshi, raising fresh concerns over the intersection of music charts and online wagering.
The song had briefly climbed to No. 1 on Spotify's U.S. daily chart after its U.S. streams surged by nearly 70% in a single day. Following an internal review, Spotify determined that a significant portion of those plays came from inauthentic activity, causing the track to fall back to No. 4 after the fraudulent streams were removed.
The incident drew attention after Kalshi traders noticed unusual betting patterns on contracts predicting which artist would top Spotify's U.S. chart before the end of June. Malcolm Todd had been viewed as a long-shot contender, making his sudden rise appear highly improbable. Despite Spotify later correcting the chart, Kalshi had already settled the market and paid out winning bets.
Spotify said it employs extensive systems to detect and remove manipulated streams and does not pay royalties on fraudulent plays. However, the company has not concluded that the artificial streaming was specifically intended to influence prediction markets. There is also no evidence that Malcolm Todd or his team were involved in the manipulation.
The episode has renewed scrutiny over how prediction markets could create new incentives for streaming fraud. Industry observers say chart-based betting contracts may encourage bad actors to artificially inflate streaming numbers in an attempt to profit from market outcomes rather than music consumption itself.
Following the controversy, Spotify asked Kalshi to remove the streaming service's branding from its platform and clarify that its markets are not affiliated with or endorsed by Spotify. Kalshi said it is in contact with Spotify and is investigating the matter.