The example of hedging that the author uses in the article is a shipping company that uses a prediction market to hedge against potential losses. A quick look shows that the biggest shipping companies in the world are doing $10 - $50 billion in yearly revenue. The article said liquidity on Iran strikes was half a billion. So it seems your point about a lack of liquidity is spot on. I doubt any large organization is currently able to use prediction markets to hedge in a meaningful way. It looks like an order of magnitude increase is needed.
The example of hedging that the author uses in the article is a shipping company that uses a prediction market to hedge against potential losses. A quick look shows that the biggest shipping companies in the world are doing $10 - $50 billion in yearly revenue. The article said liquidity on Iran strikes was half a billion. So it seems your point about a lack of liquidity is spot on. I doubt any large organization is currently able to use prediction markets to hedge in a meaningful way. It looks like an order of magnitude increase is needed.