Western Michigan-Michigan outcome created chaos for Kalshi - NBC Sports
Prediction market platform Kalshi experienced a technical error that led to the incorrect settlement of a Western Michigan-Michigan football game. The platform had to reverse payouts after initially declaring the wrong winner.
Why it matters
This incident highlights the operational risks and challenges facing the emerging prediction market industry.
Last night’s chaotic outcome to the Western Michigan-Michigan game created true chaos for the prediction markets, which have learned a valuable lesson once taught by Yogi Berra.
Via Marshall Cohen of CNN, Kalshi confirmed that it prematurely, and incorrectly, treated the game as a Western Michigan win . Kalshi later flipped the outcome, taking back money from the winners, reimbursing the losers, and then making the accurate payouts.
In all, Kalshi had $18.6 million in volume on the game.
Hopefully, Kalshi and Polymarket will be a little more patient the next time something like this happens. Otherwise, it’ll be déjà vu all over again.
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