Quietly closing its affiliated funds, big short Burry refutes rumors of shorting NVIDIA and Palantir for $900 million: only spent a total of $9.2 million
Michael Burry personally refuted the claim that media reports of "USD 912 million shorting NVIDIA and Palantir" were grossly exaggerated, stating that the actual investment was only USD 9.2 million—a difference of one hundred times. Burry pointed out that the media mistakenly took the nominal exposure disclosed by the SEC as the scale of funds. More notably, he quietly dissolved his fund Scion Asset Management and announced that a new project would be launched on November 25
The protagonist of the movie "The Big Short," the investment mogul Michael Burry, who accurately predicted the 2008 U.S. subprime mortgage crisis, has once again sparked market discussions.
After media reports revealed that he had "heavily bet against AI leaders," Burry personally stepped in to clarify, stating that the so-called "$912 million short" was merely a mathematical error by the media—the actual amount he invested was only $9.2 million.
At the same time, SEC filings show that his firm, Scion Asset Management, terminated its registration status on November 10.
"CNBC's math was off by 100 times"
Burry posted a screenshot on social media platform X, quoting a CNBC headline: "Michael Burry holds $912 million worth of Palantir put options."
He responded: "I bought 50,000 put options at $1.84 each. Each contract corresponds to 100 shares of stock. I only spent $9.2 million in total, not $912 million. @CNBC @WSJ @FT."
This discrepancy arises from the way 13F holdings reports are disclosed.
In SEC filings, institutions must disclose option positions based on "notional value," which is the theoretical exposure calculated based on the market value of the underlying stock. The media often misinterprets this figure as the actual invested capital.
For Burry's holdings, he purchased put options corresponding to 5 million shares of Palantir, with the stock price at about $182 at the time, resulting in a "notional size" of $912 million reported. However, this is just the potential exposure, not the actual investment.
In other words, Burry's actual expenditure on AI stocks was only slightly over $9 million.
He humorously noted: "Each contract allows me to sell Palantir stock at $50 in 2027. The current stock price is $184, which means—the market is 73% more expensive than my 'target price.' And the trade was completed last month."
Frequently warning of an AI bubble: NVIDIA, Palantir "ridiculous valuations"
After returning to social media, Burry has been active, repeatedly naming NVIDIA, Palantir, Meta, Oracle, and other "AI concept giants," believing they are "overinflated" in capital expenditures (CapEx) and are artificially boosting profits by extending asset depreciation periods.
He warned: "The market is being swept up in an AI bubble, just like the internet bubble of 2000."
In fact, Citron Research released a report back in August stating that Palantir's "true value is only $40," advising investors to short the stock.
Burry's "put options at $50" seem to align with Citron's assessment
Scion Fund Deregistered, Burry May "Start Anew"
In addition to shorting AI stocks, another move by Burry is equally noteworthy: he has quietly deregistered his hedge fund Scion Asset Management with the SEC.
In a letter to investors dated October 27, Burry announced the liquidation of the fund and the return of investor capital, expressing disappointment with market valuations.
According to disclosures on the U.S. Securities and Exchange Commission website, Scion's registration status was terminated on November 10. Burry later shared a screenshot on X, captioning it with "A better thing is coming on November 25."
Some investors speculate that this may mean Burry will completely break away from traditional regulatory frameworks and create a new independent platform—such as a blog, subscription channel, or trading tracking service—to directly share his investment views.
Some social media users even posted what appeared to be screenshots claiming that Burry plans to "return funds to investors and close the fund by the end of the year," although this has not been officially confirmed.
From predicting the subprime mortgage crisis in 2008 to warning of an "AI bubble" in 2025, Burry seems to consistently stand against mainstream euphoria.
His latest moves—both low-cost bets on AI stock declines and actively terminating the fund's registration—once again highlight the independent stance of this contrarian investor.
He posted an accompanying image on social media saying, "Sometimes, we can see the bubble. Sometimes, we can take action to respond. Sometimes, the only winning move is not to play?"
