Prediction market liquidity? Total nightmare for market makers. Here's the brutal reality:

First off, one outcome always crashes to zero—that's guaranteed capital loss territory. Then you've got volatility that hits like a freight train with zero warning. MMs get wrecked instantly when news drops.

But here's the kicker: insider trading runs rampant. Way more than traditional markets. You're basically betting against people who might already know the outcome.

No wonder liquidity providers stay away from these platforms. The risk-reward just doesn't add up.