"Compensation" in this market includes attorney's fees, symbolic damage payments of $1, out-of-court financial settlements in the claimant's favour - anything.
Any incident of OpenAI voluntarily, or being forced to, pay compensation to people "defamed" by its AIs will resolve this market as Yes. If they do not do so by the close date, this market will resolve as No.
@JimHays I guess I'd have to resolve the market as N/A if that was the only potential case of compensation that was reported in the media before the market close date.
I do not think it is tenable for the courts to say "Oh, well, it's just an AI, AIs get things wrong sometimes, nothing we can do". Someone has to be held responsible for harms caused by AI that are reasonably forseeable. And if the user has not provoked the AI to be defamatory with some leading prompt, it can't be the user - it has to be the organisation that created the AI and didn't sufficiently align it with truth-telling.
Any principle that "AIs cannot be held responsible for harms, and nor can anyone else, if they didn't deliberately make the AI do the bad thing" could not survive a scenario in which an AI robot, for example, murders a VIP.