Poly (N-isopropylacrylamide-co-N-(3-aminopropyl) methacrylamide hydrochloride) microgel-based optical devices (etalons) have been shown to change their optical properties in the presence of single-stranded DNA. We hypothesize that this is due to the negatively charged DNA penetrating through the Au overlayer of the etalon, resulting in cross-linking and collapse of the positively charged microgels. We have shown that this technology is capable of detecting micromolar concentrations of target DNA in solutions containing two and four base pair mismatch sequences without the use of labels. Furthermore, the device's response increases as the concentration of DNA decreases, which is unique for sensing strategies. We point out that coupling this transduction mechanism to DNA amplification strategies could result in extremely low detection limits.