AI Scion Recognizing the AI bubble, "The Big Short" Burry decisively liquidates Scion Fund.

Investor Michael Burry, who was once famous for accurately predicting the 2008 subprime mortgage crisis and served as the inspiration for the movie "The Big Short," is now exiting the asset management business. According to the latest filings from the U.S. Securities and Exchange Commission (SEC), his firm Scion Asset Management LLC officially terminated its registration status on November 10, 2025. At the same time, a screenshot of an investor letter signed by Burry and dated October 27 began circulating on the social media platform X, attracting widespread attention. The letter stated that Burry plans to liquidate his funds and return investor capital by the end of the year. "With a heavy heart, I announce my intention to liquidate these funds and return the capital by year-endretaining only a small audit/tax reserve," Burry wrote in the letter. "There has been a discrepancy between the market's evaluation of security value and my judgment, and this situation has persisted for quite some time." The authenticity of this letter has not been verified. However, several mainstream media outlets have cited its contents and confirmed that the registration termination of Scion Asset Management is shown in SEC filings. Bruno Schneller, the managing director of Erlen Capital Management, stated, "Burry's decision is less about 'exiting' and more about distancing himself from a game he believes is fundamentally manipulated." Deviation from consensus: Burry's "valuation dissent" Managing $155 million in assets as of March, Scion Asset Management's investment moves have long been seen as a barometer for detecting bubble risks in the market. Burry's recent statements may indicate his reevaluation of the current market valuation system. The "discrepancy with the market" mentioned in the letter is interpreted by many market participants as Burry's belief that the market is overvalued and lacks rational signals. In recent times, Burry has also publicly criticized the potential risks in valuing large tech companies and artificial intelligence (AI). Last week, Burry's Scion Asset Management disclosed short positions in AI star NVIDIA Corporation (NVDA.US) and Palantir (PLTR.US), indicating his cautious stance on AI trades that drove the market significantly higher this year. While Burry clarified on X that his trade with Palantir was around $9.2 million, not the mistakenly reported $9.12 billioneach contract being for 100 put options with a strike price of $50 expiring in 2027that he executed last month. In another post, he criticized Microsoft Corporation (MSFT.US), Alphabet Inc. Class C (GOOGL.US), Oracle Corporation (ORCL.US), and Meta (META.US) for allegedly inflating profit data by extending the lifespan of assets using billions in NVIDIA Corporation's chips and servers. He estimated that between 2026 and 2028, these accounting practices could lead to a underestimation of depreciation expenses by approximately $176 billion for the whole industry, thereby artificially boosting reported profits. In the same post, Burry added that he is now "on to much better things" and plans to announce new developments on November 25. The challenges of short-selling institutions In recent years, due to the unlimited optimism in the market towards the tech industry and the strong interest of retail investors, bearish views have become increasingly unpopular. Burry, like many other well-known investors, is finding it difficult to navigate in such a market environment. Earlier this year, the renowned short-selling firm Hindenburg Research suddenly closed after releasing a series of high-profile reports, including short reports on the Indian Adani Group and American electric truck maker Nikola. Jim Chanos, a veteran short-seller known for successfully shorting Enron before its bankruptcy, recently had a dispute with Michael Saylor's bitcoin holding company Strategy (MSTR.US). Chanos believed that Strategy's valuation premium was unjustified, but this criticism was fiercely rebutted by Saylor. The farewell of contrarians Burry's decision to liquidate highlights his consistent contrarian investment philosophywhen his value judgment is long-term out of line with market prices, he would rather exit than compromise. With the boost from AI and tech stocks, the U.S. stock market has repeatedly hit new highs this year, while Burry has issued warnings multiple times since the beginning of the year. His departure is seen by some market participants as symbolic protest against this "speculative frenzy." A report from JPMorgan Asset Management in September pointed out that since OpenAI launched ChatGPT in November 2022, AI-related concept stocks have contributed 75% of the S&P 500 index's increase. "Burry may believe that the current market valuation system has deviated from reality," said a fund analyst in London in an interview. "When an investor who insists on fundamental analysis finds the market irrational for a long time, stopping the game itself is a rational choice." It is currently unclear where Burry will invest after liquidating his funds. Market speculation suggests that he may transition to a family office or private investment arena. Burry's planned announcement on November 25 may reveal his new investment path. Schneller of Erlen Capital Management believes that Burry may transition to a family office model, managing only his own funds. According to regulations, investment advisors with assets under management reaching or exceeding $100 million must register with the SEC and primarily undergo federal supervision rather than state-level regulation. Regardless of the outcome, this "prophet of crisis" once again expresses his position in a highly symbolic waywhen price deviates from value, exiting may be the most pure form of standing firm.