In this deep dive, we document a real-world forensic audit of a Polymarket proxy wallet. The mission: Recover .97 USDC trapped in a stateless EIP-7702 delegate proxy and understand why automated trading resulted in losses despite seemingly obvious market outcomes.

The Latency Trap

Our investigation revealed a critical flaw in mirror-trading execution: Latency. In 5-minute Bitcoin prediction markets, the bot placed trades exactly 26 to 33 seconds after the market resolution window had ended. By the time the 'Up' bets were confirmed on-chain, the price had already dipped, turning them into guaranteed losses.

EIP-7702: The Stateless Barrier

The biggest technical challenge was the account abstraction layer. Modern Polymarket wallets utilize EIP-7702 delegation, which requires specific 4337 UserOperations for withdrawals. Despite having the private key to the main Externally Owned Account (EOA), the proxy contract enforced strict authorization checks that blocked standard withdrawal scripts.

The Result

While the recovery effort continues through official support channels, the transparency provided by the Antigravity Chronos Engine allowed us to map every cent, every second, and every block of the discrepancy. This is the power of agentic forensics.