If someone comes and starts betting for max profit and winning it, investors wouldn't be able to buy the needed CLAMS to deposit them, even if they are online and ready to buy them in an exchange (totally unrealistic). Actually, there aren't even enough CLAMS being offered in exchanges to buy them in that scenario (357703 are available on Poloniex now, that's only about 40% of the insite bankroll, and that obviously includes those listed for way more than the current price, like a 190345 clams sell order for BTC0.008 each, about 4 times the current price). An scenario like a short squeeze would occur in that case. It's just not possible to buy back hundreds of thousands of CLAMS.
I don't see the problem? If there are 357.703 coins available to be bought on polonies (there are probably other sites who sell the coins as well), and the max win is 70k-ish, everyone would be able to buy their CLAMS back.
What you are allowing, which is basically leverage, wouldn't be that problematic if it wasn't because Just-Dice bankroll is about 1/3 of the total supply of this coin, and average leverage is 1:15. The scenario of someone betting for the max profit may be unlikely, but it just makes no sense to risk getting in that situation. In that scenario, only those that aren't lying with their insite+offsite bankroll (which is probably just a minority of people as you are forced to be at 1:25 not to be deluted) would be able to bear the downswing. Meanwhile the rest of investors would be losing about 7% of their CLAMS in each max profit lost bet, instead of the optimal 1% or a conservative 0.5%.
I don't see the problem here either. As an investor, you have
the choise to take a higher risk, you don't have to if you don't want to.
Personally, I like to have more profit as an investor, so I do take a higher leverage when I invest. If I lose bigger, I realize that it's part of the game, but in the long run, I'm making more money.
70000 would.be losing just one bet. That's not a big deal. One bet of 7% of the bankroll, instead of 1% that it should be. But that player could keep betting and eating our bankroll at a rate of 7% per bet, instead of 1%. There simply aren't enough Clams in existence to keep buying them outside and depositing them on Just Dice. And that's assuming investors were online and had funds ready at the exchange to buy them, which isn't realistic at all.
Optimal leverage is something slightly higher than losing a maximum of 1% of your bankroll per bet (as 1% is our edge), because most bets target much smaller prizes. But 7% is just reckless. Or 12.5% if you are using 25x multiplier.
It simply makes no sense to allow that degree of leverage. Investors would get the same kind of returns as now if everyone was capped as about 3x, but we wouldn't risk being destroyed the day someone bets against max profit.