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Michael Burry Doubles Down on Shorts and Warns of Possible 1987‑Style Market Crash

He warns mechanical volatility‑targeting strategies could force rapid de‑risking that would expose fragility in large AI financing arrangements.

Overview

  • Burry, who posted on Tuesday, Aug. 4, said he has increased public short positions in semiconductor ETFs and several chip and tech names and warned the market may be near a major top.
  • He argues that volatility‑targeting funds—which he estimates control roughly $500 billion—use rules that can cut equity exposure quickly and that modest market drops could trigger cascading sales by these programs.
  • Business Insider and other outlets note Burry’s June and July trades paid off in part when the iShares Semiconductor ETF (SOXX) fell about 21% in July, validating some of his chip wagers.
  • Burry still holds a losing short against Nvidia and several reporters and analysts say that Nvidia’s upcoming results will be a key near‑term test of his thesis and timing.
  • Critics point out that Burry does not fully disclose trade sizes and that some claimed profits are not independently verifiable, so his warning is weighed against a mixed record on timing and continued strong demand signals for parts of the AI supply chain.