Prediction market exchange Kalshi prematurely settled its Western Michigan versus Michigan market, paying traders who backed the losing team before the game ended. The market had traded $18.6 million in volume before the final result was confirmed. The controversy stemmed from an officiating decision that restored one second to the clock, allowing Michigan to score a 47-yard touchdown in the final second and win 13-12. Kalshi clawed back payments from the incorrect initial winners before paying out the correct bettors. The incident occurred five days after a Michigan judge barred Kalshi from offering sports contracts in the state, with a $500,000 daily penalty.
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