Open interest refers to the total dollar value of active, outstanding contracts at any given moment. Trading volume, meanwhile, represents the total dollar value of contracts that actually changed hands over a specific time window.
To back his claims, Beni pointed to a highly unusual pattern of repetitive $5,500 trade sizes that single-handedly accounted for up to 58% of Kalshi’s entire ether perpetual volume across four separate days. He labeled the same as “undeniable proof” of volume manipulation.
He also noted a rebate schedule filed with the Commodity Futures Trading Commission (CFTC) that can leave certain Self-Clearing Members paying a net zero fee via a 0.3-basis-point maker rebate offset by a 0.3-basis-point taker fee. In essence, his argument is that when the cost of trading against yourself drops to zero, the incentive to artificially inflate volumes rises.
In trading, rebates are financial incentives, such as partial fee refunds or cash payments, given to high-volume market makers to encourage them to create more liquidity on a platform.
The Rebuttal
IcoBeast.eth initially brushed off the wash trading concerns on X, noting that the platform’s fee structure alone should deter manipulators. However, as the thread went viral, he followed up with a detailed breakdown to set the record straight.
