In principle, normal markets should work this way. That is, if there’s a market that won’t settle for a year, but you think next week the price is going to go up a bunch, you will want to buy it now, and then sell it when the price goes up. If lots of people do this, the price goes up now, instead of next week (and in fact, if everyone saw that coming, it went up last week instead, and so on). If the market is reasonably liquid and/​or there are market makers, you’re not committing yourself until settlement, you can just sell out of your position when the price corrects (or when you give up on it doing so).
If, on the other hand, the market is not reasonably liquid, then I don’t think iterated markets fix your problem, because people don’t have a strong reason to expect the next market forecast to match the actual probability, so they can’t profit by trading on that basis.
In principle, normal markets should work this way. That is, if there’s a market that won’t settle for a year, but you think next week the price is going to go up a bunch, you will want to buy it now, and then sell it when the price goes up. If lots of people do this, the price goes up now, instead of next week (and in fact, if everyone saw that coming, it went up last week instead, and so on). If the market is reasonably liquid and/​or there are market makers, you’re not committing yourself until settlement, you can just sell out of your position when the price corrects (or when you give up on it doing so).
If, on the other hand, the market is not reasonably liquid, then I don’t think iterated markets fix your problem, because people don’t have a strong reason to expect the next market forecast to match the actual probability, so they can’t profit by trading on that basis.