Kalshi’s market on the removal of Ali Khamenei as supreme leader of Iran ended last weekend with the company taking a $2.2 million loss after a messy series of conflicting rule “clarifications.” For many traders, it raised questions about how the exchange handles large, controversial events.
But those questions would be magnified for one class of customer that Kalshi has been chasing lately: institutional Wall Street money.
In January, Kalshi listed a contract titled “Ali Khamenei out as Supreme Leader?” A plain reading of the title would suggest that Khamenei’s death would settle the market for “yes.”
However, the terms and conditions said otherwise.
