Kalshi prematurely settled its Western Michigan vs. Michigan market before the game concluded, distributing payouts to the losing side and then reversing them after the result changed.

BeInCrypto cited the market as generating about $18.6 million in volume, and Kalshi subsequently reimbursed the incorrectly paid losers and paid Michigan holders last.

Kalshi's sports account noted a specific example: a $2,265 Western Michigan position that would have paid $93,201.

The sequence followed a Michigan court order on September 1 barring Kalshi from offering sports contracts in the state, with a $500,000 daily penalty.