Wild Michigan and Western Michigan Ending Led to Premature Kalshi Payouts That Have Since Been Corrected

A controversial ending to a Michigan and Western Michigan college football game led to an incorrect Kalshi payout Kalshi incorrectly paid out users holding Western Michigan sports event contracts prior to the official ending of the game After a last-second Michigan comeback, Kalshi withdrew Western Michigan winning funds and correctly paid out Michigan contract holders The weekend's most controversial college football game led to a premature payout – and subsequent pull back – from the country's biggest prediction market operator. Kalshi initially paid out millions on Saturday, Sept. 5, to customers with Western Michigan sports event contracts after the national broadcast showed the underdog college team defeat #16 Michigan University by a score of 12-7. However, after a replay showed the game still had time left on the clock the Wolverines were left with one last play and pulled off a miraculous final 47-yard Hail Mary touchdown to shock the Broncos with a 13-12 loss. However, Kalshi incorrectly credited Western Michigan contract holders with the win prior to the final play and paid out millions to customers, which forced the prediction market operator to pull back the incorrectly paid out winnings from users and pay out the correct winners. IT'S A MIRACLE!!! WESTERN MICHIGAN TAKES DOWN MICHIGAN IN ANN ARBOR!!!!!!!!!!!!!!! pic.twitter.com/yJTLHUPHf0 — Mr Matthew CFB (@MrMatthew_CFB) September 6, 2026 Incorrect Winnings Withdrawn The national broadcast of the game declared Western Michigan the winner of the matchup, even going so far as to displaying a 'final score' graphic after what many assumed was the final play. However, after an official replay review, it was shown that one-tenth of a second still remained on the game clock, giving Michigan one final chance to score. It resulted in a nearly 50-yard final touchdown pass from quarterback Bryce Underwood to receiver J.J. Buchanan to deliver a shocking upset to the upstart Broncos. IT'S A REAL MIRACLE!!!!!!!!!!!!!! BRYCE UNDERWOOD TO JJ BUCHANAN HAIL MARY FOR THE WIN!!!!!!!!!!!! pic.twitter.com/XQYwRaLPT6 — Mr Matthew CFB (@MrMatthew_CFB) September 6, 2026 However, Kalshi prematurely paid out Western Michigan users as winners of the event. Marshall Cohen, a senior reporter for CNN, reported the market saw $18.6 million in total volume. After the incorrect payout, Kalshi sent notices to users with contracts in the market and reported that any incorrect winnings would be withdrawn, Michigan contracts holders would be reimbursed their initial stake, and be paid out their winning amount. Kalshi sent another email later, apologized for the error, and credited accounts with $50. A Kalshi spokesperson told Sports Betting Dime the company made sure all customers were paid out correctly. 'We corrected the result to a Michigan win, making sure all Kalshi customers got paid out correctly,' the spokesperson said. As someone that actually benefited from betting on Michigan, I just want to circle back and say that Kalshi did the right thing here. I cannot speak for what your dealings with Kalshi or prediction market betting has been but I'm going to call it fair regardless They… https://t.co/cClOt3YVfh pic.twitter.com/gdMeHjIaqf — Randall Barnes (@AuthorRandallB) September 6, 2026 Aftermath of the Western Michigan / Michigan Kalshi settlement drama pic.twitter.com/dKD20qJIwa — Ian Lee (@iangunhalee) September 6, 2026 Coinbase Credits Winners and Losers Coinbase Financial Markets, which partnered with Kalshi for its prediction market exchange, announced Kalshi's 'erroneous settlement' led to certain contracts being underpaid, Cohen reported. Coinbase correctly paid out those who held contracts on Michigan, but noted that payouts it already made to Western Michigan under the 'original incorrect settlement' would stand and would not be reversed.