A trader incurred a $1.58 million loss by misinterpreting a bet on Polymarket, a probability market platform. The trader bought a "YES" position at $0.66 on Liverpool to win, mistakenly treating it as a binary sports bet rather than a probability trade. This error stemmed from a misunderstanding that buying at $0.66 implied a belief that Liverpool's true winning probability was higher than 66%, rather than a straightforward prediction of victory. This fundamental misinterpretation of Polymarket's mechanics led to significant financial losses.