Anticipating a Democratic retake of Congress, Polymarket traders simultaneously shorted $6.5 million worth of S&P 500 and storage stocks.

According to Hyperinsight monitoring, Polymarket trader "BearKingdom" is simultaneously betting on a shift in US politics and a pullback in risk assets. In the prediction market, he is betting that the Democratic Party will control Congress after the 2026 midterm elections and that the Clarity Act will not be passed this year. He is also shorting the S&P 500, SK Hynix, and Changxin Technology on Hyperliquid, with a combined notional value of approximately $6.492 million. On Polymarket, BearKingdom currently holds six positions with a total investment of approximately $164,100, a current value of approximately $193,800, and a floating profit of approximately $29,700. Among these, the trader bet on the Democratic Party controlling Congress through three Yes positions, totaling approximately $72,500, currently valued at approximately $79,200: "Democrats control the House" Yes: 47,300 units, valued at approximately $40,400; "Democrats control the Senate" Yes: 79,900 units, valued at approximately $34,800; "Democrats control both houses" Yes: 9,224 units, valued at approximately $4,013. The largest projected position bets that the CLARITY Act will not be signed into law in 2026. This trader holds 153,500 No positions, with a cost of approximately $84,600, currently valued at approximately $106,700, representing a floating profit of approximately $22,100. On-chain correlations show that the Hyperliquid external wallet starting with 0x48d corresponds to the Polymarket account "BearKingdom" and its proxy wallet starting with 0xabe. On the Hyperliquid platform, the trader currently holds three short positions, totaling approximately $6.492 million, with a net unrealized loss of approximately $148,300: S&P 500: 6x isolated short position of approximately $3.244 million, average price $6757.58, unrealized loss of approximately $307,500; SK Hynix: 2x isolated short position of approximately $2.721 million, average price $1266.05, unrealized profit of approximately $191,000; Changxin Technology: 2x isolated short position of approximately $527,100, average price $7.075, unrealized loss of approximately $31,800. In addition, the trader has placed 88 buy orders (only reducing positions) for all 70,000 CXMT short positions, with prices concentrated between $6 and $6.6679, and a weighted average order price of approximately $6.2456, planning to take profits in batches after the price retraces. BearKingdom traded on different events at both ends, but their positions were quite consistent: the forecasting market bet on the Democrats regaining Congress and a delay in the crypto regulatory process; while the trading market bet on the US stock market and storage stocks facing pressure at high levels.