Paddy Power is paying out customer bets, done at awful levels, but has almost certainly only done so after hedging on the exchange. A closer look at the volume overlayed with the odds on the chart shows that the vast majority of the action was taken with Hillary’s odds north of 80%, and nearly all of the action came with the odds above 60%. Paddy Power can hedge all of its exposure in the market right now for considerably less than the $1 million it will be paying out; with exchange odds for Trump just below 30%, they would only need to put down a touch less than $300,000 of action on Trump to cover a full payout on Hillary. So not only did the Betfair exchange customers lay high sums for low rewards, the Paddy Power customers laid at least 1-5, probably closer to 1-10 odds to place their bets on Hillary.
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