Yeah - as rightly mentioned. With 1k sats liquidity, the odds can move to extreme like 0.01% or 99.99% very quickly. If someone buys at that price and the market moves to the other extreme (0.01% -> 99.99%), then that trader made a killing. It's by design, thats how the markets work. Look at example below:

@ 0.01% the price per share is 10 mats to win 1 sat (1000 sat). The price is directly correlated to the probability.

Next time with your type of market - where you get so many traders and volume, I would add a liquidity of 50k-100k sats or even 200k sats. And at-least charge (0.99% buy, 0.95% sell, 0.25% win) fees.

Remember this is just a recommendation, they only way you'll recover your liquidity is by earning from trading fees.