Big Short Burry Shorts AI and Loses Money Still Doesn't Give Up! Mysterious Preview Revealed on November 25

Known for the prototype of “The Big Short,” hedge fund manager Michael Burry has repeatedly warned of AI bubble risks and taken short positions. As his fund continues to incur losses, he has in November registered the termination of his investment advisory registration with SEC for Scion Asset Management. He states he remains active in the market, hinting at potential new developments on November 25.

The Big Short Burry Closes Fund but Claims to Remain Active in the Market

According to public records, Scion’s registration was effectively terminated on November 10, with Burry posting on X “on to much better things Nov 25th,” leaving a hint that there may be new moves on November 25. The market interprets this as him shifting focus to other investment vehicles or projects, while shedding the reporting obligations and compliance costs associated with RIA status.

Burry told the community via email: “This round is essentially a friends and family fund… I am still managing my own capital and active in the market. This is not a shutdown, just no longer an RIA or managing a fund for outside investors.” This statement clarifies the boundary between regulatory status change and continued investment activity, reducing public misconception of a “full exit.”

This approach contrasts sharply with the strategy of MicroStrategy founder Michael Saylor. Saylor has transformed his company into a Bitcoin holding vehicle, transparently displaying every Bitcoin purchase, and continuously expanding holdings through bond and equity issuance. Conversely, Burry chooses to exit the public regulatory framework, operating in secrecy and no longer required to disclose holdings quarterly. These two styles represent two extremes in contemporary finance: highly transparent aggressive gambling vs. discreet value investing.

$1 Billion Put Bet on AI Bubble Burst

Bloomberg columnist Shuli Ren believes that Burry’s fame has harmed him. Before voluntarily returning outside capital to Scion Asset Management in November, he filed a conspicuous 13F report, which can be seen as his final judgment before shutting down the fund: a put position worth over $1 billion targeting Nvidia and Palantir.

In the document, Burry disclosed holding 1 million Nvidia puts with a notional value of approximately $187 million; simultaneously, he held 5 million Palantir puts with a notional value of about $912 million. Shuli Ren points out that this scale exceeds simple hedging and appears more like a bet-the-company move. Burry believes that the stellar performance of tech giants is not driven by end-user demand but by cloud service providers heavily stockpiling chips to gain market share, creating “synthetic growth.” According to Nasdaq, he questions whether companies are undervaluing hardware depreciation, using accounting tricks to hide declining capital returns.

He compares the current atmosphere to a replay of the 2000 dot-com bubble. Taking Palantir as an example, with a P/E ratio over 700 based on the “perfect execution” assumption, Burry judges that valuation will ultimately revert to reality. This reasoning aligns with his potential view of MicroStrategy — when a company’s valuation is entirely based on the price expectations of a single asset (Bitcoin) rather than fundamental cash flows, a bubble rupture is only a matter of time.

Burry’s Core Argument for Shorting AI

Synthetic Growth: Cloud providers’ market share grabs leading to artificially high chip demand, not genuine end-user needs

Accounting Manipulation: Companies underestimating hardware depreciation, masking declining capital returns

Valuation Distortion: Palantir’s 700 P/E ratio, Nvidia’s overvaluation relying on perfect execution assumptions

History Repeating: Current AI hype similar to the 2000 internet bubble

DeepSeek Incident Exposes Blind Spots and Chinese Market Setbacks

Shuli Ren warns investors to review Burry’s recent setbacks in the Chinese market. In Q1, Scion sold all its Alibaba positions, followed by breakthroughs in Chinese AI model DeepSeek, sparking a critique: if he missed the turning point in Chinese AI, could his judgment on the U.S. AI bubble also be flawed?

This lesson also applies to evaluating MicroStrategy’s strategy. As a value investor, Burry tends to find undervalued assets and short overinflated bubbles. But in an era of rapid technological innovation, breakthrough advances can instantly change valuation logic. DeepSeek’s emergence shows China’s AI race is surpassing expectations, potentially transforming the competitive landscape and capital efficiency in AI industries.

The same logic applies to Bitcoin and MicroStrategy. If Bitcoin truly becomes a global reserve asset or institutional store of value, MicroStrategy’s bold bets may prove prescient. But if Bitcoin ends up being just a speculative frenzy, MicroStrategy might face a collapse more severe than Burry’s short on AI. The key is that the pace of technological narrative shifts far exceeds traditional value investing timelines.

Value Investing vs. Radical Gambling Philosophical Showdown

In 2025, under Trump’s continued loose monetary policies and momentum trading, short positions are often threatened by short squeezes. Shuli Ren interprets Burry’s fund return as a defensive move against investor pressure: operating alone, no longer bearing redemption risks, with patience and flexibility to gamble against the market. This echoes his 2008 experience of single-handedly maintaining mortgage default swaps.

This solitary persistence contrasts with MicroStrategy’s public gamble. Michael Saylor has transformed his company into a Bitcoin holding vehicle, publicly sharing each purchase and promoting Bitcoin faith via social media. This strategy has yielded huge returns during Bitcoin’s rise but also exposes the company to risks like MSCI index exclusions, rising financing costs, and valuation collapses.

Burry’s value investing philosophy emphasizes patience, contrarian thinking, and deep research. He believes markets will ultimately revert to fundamentals, and overvalued assets will correct. Conversely, MicroStrategy’s approach is based on absolute confidence in Bitcoin’s long-term value, disregarding short-term volatility and continuously increasing holdings. Both strategies have successes but also face significant risks.

Shuli Ren emphasizes that the DeepSeek incident shows technological narratives can flip instantly—experienced bears can also lose out due to technological revolutions. After Burry closed Scion, he only needs to be responsible for his own funds, and outside observers cannot see real-time movements from quarterly reports, making risks and opportunities more concentrated.

Mysterious Preview for November 25

Burry posted on X “on to much better things Nov 25th,” sparking widespread speculation. Possible scenarios include:

· Launching new investment vehicles or private funds

· Releasing major market warnings or research reports

· Announcing new large-scale short positions

· Or just personal projects or publishing plans

Regardless, every move of the legendary short seller will attract market attention. His bet serves as a reminder, urging investors to scrutinize the capital efficiency and real demand in the AI industry; but in an era of rapid technological change, any single perspective may be flawed. The market will soon verify whether this bear legend will once again expose the emperor’s new clothes or be pushed to the margins by new narratives.