I think its a bit more complicated than this. Disputed outcomes are decided by votes from UMA token holders, which are anonymously owned. I remember reading a theory (with evidence, can't find the article now) that the venn diagram between Polymarket owners/stakeholders and UMA whales is close to a circle.
For the same people accept Tether's claims of solvency even though they refuse audits and obviously lie about ownership of various assets. For the same reason people ignore wash trading. For the same reason people continue using Sam-coins even after FTX's implosion.
Because A) they're not paying attention, B) they're in denial and C) because they think they can profit in the short term before it collapses, or that the odds are in their favor to profit despite the risks.
