Here's a cautionary tale about the difference between being right and staying solvent. A Polymarket trader known as Bossoskil1 managed to lose $2.36 million in eight days while maintaining a nearly 50-50 win rate. The culprit wasn't bad predictions—it was catastrophic position sizing.

The Anatomy of a Blowup: According to blockchain data tracked by Lookonchain, Bossoskil1 placed 53 bets heavily concentrated in sports markets, including NFL, NBA, NHL, and NCAA games. The strategy focused on spread markets, buying positions typically priced between 40 and 60 cents, where correct calls can deliver returns of 60% to 150%.

The problem? Position sizes were wildly aggressive. Routine wagers hit $200,000, with some exceeding $1 million. Every position was held to settlement with zero hedging, no scaling out, and no profit-taking along the way.

The final tally: 25 wins, 28 losses. Statistically unremarkable. But the payoff structure was brutal. Losing bets went to zero, while a handful of massive losses completely overwhelmed the gains from winning trades. One seven-figure loss alone defined the entire week.

The Real Lesson: In high-variance markets like sports spreads, confidence without position limits is a recipe for disaster. Bossoskil1 didn't fail because of poor prediction skills—the account blew up because individual outcomes were allowed to dictate survival.

It's a principle that applies far beyond prediction markets: having an edge means nothing if you don't control losses. Risk management, not conviction, is what keeps you in the game.