Massive short selling turns into a short squeeze! Michael Burry disbands his fund, predicting the AI bubble will result in total losses.

Big Short prototype Michael Burry disbands Scion, warns of AI bubble and announces a revelation on November 25 (Background: “The Big Short” original Michael Burry silent for 2 years again warns of bubble: sometimes the best winning strategy is to not participate) (Background supplement: Why did Michael Burry from “The Big Short” close all positions this season! Why turn to short Nvidia and Chinese tech stocks?) The protagonist of The Big Short, Michael Burry, has once again dropped a bombshell. This investor, who accurately predicted the 2008 financial crisis, quietly deregistered Scion Asset Management from the SEC on November 10, and immediately released a sharp warning about the tech bubble via social media, announcing that “weighty news” will be disclosed on November 25. His every move triggers market nerves amid the AI frenzy and high interest rates. Fund deregistration: bidding farewell to regulatory restrictions According to Reuters, Scion has been marked as “terminated,” and in the future, it no longer needs to submit quarterly 13F reports. Outside speculation suggests that Burry may transform Scion into a family office for greater privacy and operational flexibility. As of March 2025, the fund managed assets of approximately $155 million. The reasons for deregistration include falling below the SEC's $100 million threshold and his proactive withdrawal from public regulation to avoid attention during reverse investment layouts. The depreciation trap of paper profits Closing the fund is not Burry's only move. He compared the current speculative atmosphere on the X platform to the “tulip mania,” directly pointing out that large tech companies are exaggerating paper profits by extending the depreciation period of AI servers and other equipment. He specifically named Oracle and Meta, estimating that profits will be overestimated by 27% and 21% respectively from 2026 to 2028. He further calculated that the market has grossly underestimated approximately $176 billion in depreciation expenses, indicating that the actual capital expenditures on AI infrastructure are severely underestimated. Contrarian bets on AI star stocks This “big short” has verified his views with actual positions. He had established large put positions on Nvidia and Palantir, although he later clarified that the nominal position on Palantir was $912 million, with actual capital only $9.2 million, but his contrarian attitude is clear. Palantir's CEO Alex Karp countered that Burry is “simply crazy.” So far this year, Nvidia's stock price has risen about 46%, while Palantir has surged 157%, putting significant short-term loss pressure on Burry, yet he emphasized on social media: “My layout will work.” His obsession with long-term risks is no different from his bet on the housing market collapse in 2008. The suspense before November 25 Burry has announced that he will release “weighty news” on November 25, and the market speculates that it could be a detailed research report, a family office transformation plan, or new major doubts raised against a single company. Regardless of the content, his past record is enough to influence the market's pricing of risk. If the financial reports of tech stocks really hide massive depreciation costs, investors may need to recalculate valuations at that time. From fund deregistration, questioning depreciation, to betting against AI star stocks, Burry acts as a mirror reminding of risks. He chooses to withdraw from public regulation and raise privacy thresholds, perhaps in preparation for the next contrarian bet. Before the unveiling on November 25, Wall Street is holding its breath, eager to find out whether this investor, who once rewrote market narratives, will reveal the bottom line of the bubble once again. Related reports Wall Street leader enters the game: JPMorgan pushes dollar deposit token JPM Coin for around-the-clock trading and second-level payments Peter Schiff: Bitcoin has completely bubbled “big pump is Wall Street manipulation,” gold is the real safe haven Wall Street Journal warns: From sports to AI “gambling addiction bubbles,” Trump is the instigator of the wave “The Big Short turns into a big short squeeze! Michael Burry disbands his fund, predicting AI bubble will wipe out all” This article was first published on BlockTempo, the most influential blockchain news media.