Kalshi Reverses Payouts After Michigan's Late Comeback
Prediction market Kalshi paid out Western Michigan backers early, then clawed back funds and repaid winners after Michigan's late comeback flipped the result.
Western Michigan led in the closing stages. Kalshi's system settled contracts backing a Western Michigan win as winners and released payouts to the users holding them. Michigan then put together a scoring drive that flipped the result before the final whistle.
With the real score on the board, Kalshi reversed the settlement. Money already credited to Western Michigan backers was pulled back out of their accounts, and users who had been marked as losers under the premature call were refunded. The exchange then ran payouts a second time, based on the actual outcome.
Trading on the game's result totalled $18.6 million.
Kalshi operates as a prediction market rather than a bookmaker.
A market that size settling twice on the same game raises the question of what happens the next time a result flips late, and how many contracts get caught in the reversal before the exchange catches its own mistake.
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