Kalshi Paid the Wrong Winners $18.6 Million Before Michigan's Miracle Comeback
Kalshi settled its Western Michigan versus Michigan market before the game ended, paying traders who backed the losing team. The exchange then clawed that money back.
The market had traded $18.6 million by the time the result became final. Traders on both sides watched their balances move twice in the space of minutes.
How Kalshi Settled the Michigan Game Too Early
Michigan trailed 12-7 with the clock reading zero after an incomplete Hail Mary attempt. Western Michigan players had already run onto the field to celebrate.
Officials then reviewed the play and ruled that a Western Michigan defender touched the ball from out of bounds. One second still showed on the clock.
That second was restored and quarterback Bryce Underwood threw a 47-yard touchdown to JJ Buchanan, and Michigan won 13-12.
Kalshi had already treated the zeroed clock as the final state. It paid the Western Michigan side, then reversed those payouts. It reimbursed the wrongly marked losers and paid Michigan holders last.
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