Susquehanna takes record sports loss on Knicks comeback as Kalshi volume peaks
Susquehanna International Group's prediction market desk recorded its largest sports trading loss ever while making markets during the Knicks' Game 4 NBA Finals comeback on June 11, 2026. The loss came as the specific game-winner market became one of the top 10 most traded markets of all time on Kalshi, with $171.6 million in volume. Kalshi simultaneously hit a record high in overall trading volume during the event, underscoring the exchange's growing traction in live sports markets and the capital risk now borne by institutional liquidity providers backing those contracts. The convergence of record retail flow and outsized price swings tested market-making risk models in real time.
Susquehanna's record loss demonstrates that institutional market makers on Kalshi now face sportsbook-scale risk on single-game outcomes. Any sustained volatility of this magnitude will force DRW, Wintermute, IMC and Susquehanna to widen spreads or reduce position limits, directly degrading execution quality for retail traders and threatening Kalshi's liquidity advantage over rival venues.
Susquehanna joins DRW, Wintermute and IMC in building dedicated prediction market desks, making it the fourth institutional market maker to commit capital to Kalshi and Polymarket's sports and event-contract order books.