Michael Burry Issues Market Bubble Warning: Echoes of 2008 in 2025
Remember that guy from The Big Short who saw the housing crash coming when everyone else was partying? Yeah, Michael Burry. The hedge fund whiz just broke his two-year Twitter silence with a post that’s got Wall Street buzzing. On October 31, 2025, Michael Burry tweeted: “Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.” It’s a nod to the 1983 flick WarGames, but the message hits hard – especially now, with AI stocks soaring like it’s 1999 all over again.
Michael Burry, who runs Scion Asset Management from his California home, isn’t one for chit-chat. His last X post was in April 2023, and he’s famous for spotting trouble early. In 2008, Michael Burry bet against subprime mortgages and made $100 million while the world burned. Lately, Michael Burry has called out everything from Tesla to crypto as overhyped. This time? No specifics, but the timing screams AI bubble. Tech giants like Nvidia are up 150% this year alone, fueled by chatbot fever and data center dreams. Michael Burry even swapped his profile pic to a cartoon of the 1637 Dutch tulip mania – you know, when flowers cost more than houses.
Why now? Markets are frothy. The S&P 500’s at record highs, but under the hood, things look shaky. Repo rates spiked last week – the Fed pumped in $20 billion to calm nerves, the most since the 2019 crunch. Mortgage bonds are wobbling too, echoing 2007 vibes. And AI? Companies are dumping billions into servers that might sit idle if the hype fades. Michael Burry‘s not sitting idle though – his fresh Q3 2025 13F filing, dropped early on November 3, shows Michael Burry loaded up on put options worth $912 million against Palantir and $187 million on Nvidia, making up 80% of Scion’s $1.38 billion portfolio. That’s Michael Burry doing something about it – betting over $1 billion the AI frenzy will flop.
On X, it’s blowing up. One trader quipped, ” Michael Burry‘s back – time to sell everything?” Another shared his post with, “AI bubble confirmed? Lost millions shorting Nvidia this year – ouch.” Analysts are nodding along. GQG Partners called markets “dot-com on steroids,” with tech valuations 270% wilder than the 2000 peak. Even the Bank of England flagged an “AI valuation bubble” as a global risk.
Michael Burry‘s no stranger to being ignored – he named his account “Cassandra Unchained” after the prophetess whose warnings went unheeded. In 2021, Michael Burry railed against meme stocks and Bitcoin; both tanked later, vindicating him. But he’s human – shorts on Palantir and Nvidia flopped earlier this year, costing millions. Still, Michael Burry‘s track record? Spot-on when it counts.
So, what should you do? Michael Burry‘s not yelling “crash tomorrow.” He’s saying bubbles form slow, pop fast, and sometimes the best bet is cash under the mattress. If you’re heavy in tech, maybe trim. Diversify into boring stuff like value stocks or bonds. Or, like Michael Burry, wait for the real edge – his new puts show he’s gearing up for the fight.
This warning feels timely – with Fed cuts looming and election drama, 2025 could get bumpy. Michael Burry‘s tweet racked up a million views overnight, reminding us: The guy’s got a nose for nonsense. Ignore at your peril, or at least peek at your portfolio.
