Spotify Deletes 500K Streams of Malcolm Todd's 'Earrings' After Suspected Kalshi Betting Fraud (2026)

On July 2, 2026, Spotify removed more than 500,000 fraudulent streams from Malcolm Todd's song "Earrings," dropping it from the top of the daily U.S. chart to No. 4. The action came after evidence emerged that traders on the prediction market Kalshi had used bot farms to artificially inflate the song's streams, then collect payouts from bets placed on its chart performance. The incident has ignited a fierce debate about the integrity of music charts and the growing entanglement of streaming platforms with speculative betting markets.

What Happened: Spotify Deletes 500K+ Streams After Suspicious Chart Surge

On June 30, 2026, Malcolm Todd's "Earrings" unexpectedly shot to No. 1 on Spotify's daily U.S. chart, accumulating over 500,000 more streams than expected in a single day. Shortly after, the Financial Times reported that Kalshi, a regulated prediction market, had offered contracts on whether the song would hit No. 1 Financial Times. Traders who bet "yes" on the contract earned up to 20x their initial investment. Spotify's internal fraud detection systems flagged the abnormal stream pattern as artificial, and the company removed the illicit streams with a correction that brought the song to No. 4.

WIRED confirmed that Spotify identified the streams as originating from bot networks, though the company did not explicitly link them to Kalshi traders WIRED. However, a prominent Kalshi trader publicly complained that Spotify's correction invalidated his winning bet, accusing the platform of unfairly changing the rules after the fact.

How Prediction Markets and Bot Farms Collide

This incident highlights a new vector for streaming fraud. Prediction markets like Kalshi and Polymarket allow users to bet on real-world outcomes, including Spotify chart positions. Unlike traditional betting, these markets are designed to forecast events, but they are susceptible to manipulation when bettors can influence the outcome they are wagering on.

The mechanism appears straightforward: a trader buys a contract that pays out if a specific song reaches No. 1 on a given day. That same trader—or a co-conspirator—then deploys a bot farm to stream the song on repeat, artificially boosting its position. Once the bet pays out, the streams are deleted, but the profit remains. In the case of "Earrings," Kalshi had already paid out winners and losers based on the manipulated data before Spotify corrected the chart The Fader. This meant that traders who bet on "no" were unfairly paid out, while those who bet "no" lost money—and some who bet "no" actually lost money despite the song never legitimately reaching No. 1.

Mashable reported that Polymarket also offered contracts on chart performance, and that the same bot activity may have influenced multiple songs Mashable. The scale of the fraud is underscored by the fact that Kalshi has processed billions in wagers across hundreds of contracts, with music chart bets becoming increasingly popular.

Spotify's Response: Logo Removal and Public Repudiation

Spotify has not taken the incident lightly. Besides removing the streams, the company formally asked Kalshi and Polymarket to remove any Spotify branding from their websites, denying any partnership with the prediction markets Hollywood Reporter. In a statement, Spotify emphasized that it does not endorse or support gambling on chart positions and that its terms of service prohibit artificial streaming of any kind.

The streaming giant also updated its fraud detection algorithms to identify patterns consistent with prediction-market-driven manipulation. According to WIRED, Spotify is now cross-referencing rapid stream spikes with known betting schedules to preempt future incidents WIRED. However, the company has stopped short of publicly naming the traders involved, citing privacy concerns and ongoing investigations.

The Malcolm Todd Situation: Artist Not Implicated

Malcolm Todd, a relatively unknown artist before the controversy, has not been accused of any wrongdoing. His label confirmed that Todd had no knowledge of the bot activity and that they are cooperating with Spotify's investigation. NME reported that the song's organic streams remain strong, with "Earrings" still charting in the top 50 after the correction NME. The incident has instead highlighted how easily a third party can hijack an artist's work for financial gain.

Key Data Points at a Glance

Detail	Value
Song	"Earrings" by Malcolm Todd
Streams removed	>500,000
Original chart position	No. 1 (U.S. daily)
Corrected position	No. 4
Prediction market	Kalshi (also Polymarket)
Max payout reported	20x stake
Date of correction	July 2, 2026
Source of fraud	Automated bot farms
Artist involvement	None alleged

Broader Implications: A New Era of Streaming Fraud

This event marks the first documented case where prediction market bets directly motivated streaming fraud, but it likely won't be the last. The rise of AI-driven bot farms has made it cheap and easy to generate thousands of fake plays per hour. Combined with the lucrative returns available on prediction markets—where a well-placed bet can yield 10x or 20x returns—the incentive for manipulation is powerful.

Gizmodo noted that the incident has prompted lawmakers to consider bills banning bets on outcomes that can be influenced by the bettors themselves Gizmodo. Several U.S. states are now examining whether prediction markets should face the same regulatory oversight as sportsbooks, especially when the wagers involve fragile digital ecosystems like streaming charts.

For Spotify, the challenge is dual: detecting increasingly sophisticated fraud while maintaining a fair chart system that artists and fans trust. The company invests heavily in anti-fraud technology, but as this case shows, the exploit can originate outside the streaming ecosystem entirely—from a betting platform that Spotify does not control.

What This Means for Artists and Labels

Artists and labels should be vigilant. While Malcolm Todd was an innocent beneficiary, the next artist might not be. If a label or artist is found complicit, the consequences could include permanent removal from Spotify, legal action, and reputational damage. The Recording Academy, which oversees the Grammy Awards, has stated that chart-inflated tracks could become ineligible for awards if fraud is proven.

Labels now face the added burden of monitoring not just streaming numbers but also betting markets. A sudden spike in a song's chart position coinciding with a new Kalshi contract may be a red flag that requires immediate reporting to Spotify.

Conclusion: The End of Trust in Charts?

The Spotify-Kalshi scandal has eroded confidence in the integrity of streaming charts. If a song can be artificially pushed to No. 1 by a handful of traders, what does that say about the hundreds of other chart movements that go uncorrected? Streaming platforms, prediction markets, and regulators each need to step up their game. For now, "Earrings" remains a cautionary tale—and a hit song tainted by the bots that made it famous.