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Sounds like a glaringly obvious conflict of interest?
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Be careful, the market makers always win. If you go against them, you make yourself a target.
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Of course it is, people will do whatever they can get away with.
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A different entity provides liquidity.

There’s no house like in sportsbooks.

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And there is no house in pool betting, poker or backgammon either. We still count all of them including betting exchanges (what has now been rebranded as prediction markets) are still normally regulated as gambling.
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Not in the US.
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Kalshi does not trade against its users.
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Kalshi definitely does this

They just don't make any money off it.

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