Kalshi, the prediction-market platform, is standing firm on a policy that nobody can profit from someone's death, even after angry traders demanded payouts.

• Traders bet on a political candidate's fate, and some wanted to cash in after the candidate died, expecting a payout as if the event had already resolved in their favor.
• Kalshi refused, settling the market at the price right before the death instead of paying out winners, citing a long-standing rule against creating incentives for anyone to profit from a death.
• The company did offer to refund fees and losses for traders on that specific market, saying it kept none of the money itself.
• This highlights a bigger risk for prediction markets as they scale to tens of millions of users: rules written for edge cases can trigger real backlash when real money and real tragedy collide.

Outlook: Expect prediction-market platforms to keep tightening and publicizing these "no profit from death" rules as betting on elections and public figures grows more popular.