Kalshi Settles Michigan Market Early, Then Reverses Payouts

Kalshi prematurely settled its Western Michigan vs. Michigan market before the game ended, paying traders on the losing side and then clawing back those payouts after the result changed. The market drew $18.6 million in volume, according to BeInCrypto, and Kalshi later reimbursed the wrongly marked losers and paid Michigan holders last. The exchange’s own sports account highlighted a $2,265 Western Michigan position that would have paid $93,201. The error came after a Michigan judge barred Kalshi from offering sports contracts in the state on September 1, with a $500,000 daily penalty.