Michael Burry, the investor immortalized in The Big Short, has officially liquidated Scion Asset Management, his American hedge fund headquartered in California. The move ends a six-year run, reviving comparisons to his 2008 retreat.
The fund is best known for profiting from the subprime mortgage crisis and for paving the way for the GameStop short squeeze.
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Michael Burry Walks Away from the Markets — Is He Quietly Turning Toward Crypto?
In a letter to investors dated October 27, 2025, Burry wrote that his “estimation of value in securities is not now, and has not been for some time, in sync with the markets.”
Michael Burry’s Letter to InvestorsThe move marks the second time Burry has voluntarily closed a fund while holding deep contrarian positions. Initially, it was after profiting from the subprime collapse. This time, it comes amid what he calls an “AI-bubble dynamic.”
For investors charting stretched equity valuations and rising crypto optimism, his exit may signal a pivotal rotation point.
In recent posts on X (Twitter), Burry accused major tech firms of “fudging depreciation schedules” to inflate AI-related earnings, likening the mania to the late-1990s dot-com bubble surge.
His latest 13F filing, submitted unusually early, shows tens of thousands of long-dated put options extending to 2026 and 2027. These compose aggressive bearish wagers against stocks such as Palantir ($PLTR).
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The disclosure positions Burry for a potential multi-year correction driven by overextended liquidity and investor euphoria around artificial intelligence.
If Burry’s thesis holds, it would echo the macro conditions that preceded both the 2008 financial crisis and Bitcoin’s early rise as an alternative, non-correlated asset.
From Fund Manager to Self-Custody
By deregistering Scion and shifting to a family office model, Burry effectively removes himself from quarterly disclosures and investor pressures, a step toward full control of capital.
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Analysts note that the move embodies the same self-sovereign philosophy that underpins crypto adoption:
- Independence from institutional gatekeepers and
- Long-term conviction over short-term performance.
Why It Matters for Crypto Investors
The liquidation comes as Bitcoin consolidates in the $103,000 range, and institutional interest in crypto ETFs accelerates. Market watchers suggest that if Burry’s forecast of an equity-market unwind materializes, capital could flow toward “hard” digital assets, which are seen as liquidity hedges.
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Historically, similar periods of monetary tightening followed by stimulus (2008 and 2020) have preceded major Bitcoin rallies.
Bitcoin Price Performance (2020). Source: TradingViewBurry himself has not disclosed any crypto exposure. Still, his flight from traditional markets aligns with the logic that many Bitcoin advocates cite, including distrust of inflated valuations, central bank liquidity, and unsustainable corporate leverage. Burry also hinted at a new focus due on November 25, barely two weeks from now.
Whether that means alternative assets, private ventures, or rest, his latest retreat suggests a broader sentiment shift that even legendary stock pickers are questioning Wall Street’s price signals.
When traditional markets look detached from reality, self-custody and hard-asset exposure may again prove to be the ultimate contrarian trade.
Source: https://beincrypto.com/michael-burry-exits-scion-asset-management-market-r/
