![\"US](\"https:\/\/static.toiimg.com\/thumb\/msid-132846278,imgsize-78465,width-400,height-225,resizemode-4\/michael-burry.jpg\")
<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\nAmerica\u2019s biggest investor Michael Burry, who is known for predicting the popular 2008 housing crash and portrayed in The Big Short, has now issued a stark warning about US stocks. According to a report by Business Insider, in his latest Substack post, Burry said he sees the risk of a rapid unwind driven by automated volatility-focused investment funds, which could unleash \u201ccarnage\u201d across the market. Burry pointed to the recent plunge in momentum stocks \u2014 high-flying chipmakers and memory names as a preview of what could unfold. The iShares MSCI USA Momentum Factor ETF has dropped 14% from its peak, underscoring how quickly profits can evaporate when investors rotate out of overheated trades. \u201cThat leaves a bloody mess, but most would not be looking for it,\u201d Burry warned.<\/p>\n According to Burry, markets are showing an \u201casymmetric and out-of-proportion severity\u201d on down days, with fear levels climbing to their highest in nearly a century. He argued that automated trading programs are fueling both sharper selloffs and faster rebounds, creating chaotic conditions no human investor would replicate.Burry estimated volatility-targeting funds hold about $500 billion in assets, a fraction of the $60 trillion U.S. stock market but still large enough to spark systemic stress if forced to sell simultaneously. He outlined a scenario where a mild 2.5% S&P 500 drawdown could prompt funds to slash exposure from 77% to 50%, amplifying losses and triggering stop-loss cascades.<\/p>\n Recently, Michael Burry voiced his sharp criticism of reports that Nvidia is preparing a a $250 billion backstop for OpenAI\u2019s massive Ohio data-center project. According to a report by the Wall Street journal, the guarantees would help OpenAI lease a 10-gigawatt site being developed by SoftBank\u2019s SB Energy, with total costs potentially exceeding $500 billion. Burry\u2019s complaint echoes what analysts have long warned about in AI megadeals: circular funding arrangements that expose investors to enormous risk if sentiment shifts or growth slows. Nvidia, already valued at $5 trillion, has invested $30 billion in OpenAI and is now considering financing chip purchases worth another $350 billion. Critics say such structures could leave the industry vulnerable, especially since OpenAI remains unprofitable and lacks an investment-grade credit rating.Michael Burry\u2019s criticism underscores growing unease about the sustainability of $100 billion-plus AI financing structures. His warning suggests that while AI demand is surging, the industry\u2019s reliance on complex guarantees and debt-backed megaprojects could become its biggest vulnerability.<\/div>\n America\u2019s biggest investor Michael Burry, who is known for predicting the popular 2008 housing crash and portrayed in The Big Short, has now issued a stark warning about US stocks. According to a report by Business Insider, in his latest Substack post, Burry said he sees the risk of a rapid unwind driven by automated […]<\/p>\n","protected":false},"author":1,"featured_media":8742,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-8741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-31"],"magazineBlocksPostFeaturedMedia":{"thumbnail":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","medium_large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","1536x1536":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","2048x2048":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","blogsy-small":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","blogsy-small-tall":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","blogsy-small-square":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","blogsy-small-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","blogsy-medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","blogsy-medium-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","blogsy-large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg","blogsy-wide":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg"},"magazineBlocksPostAuthor":{"name":"admin","avatar":"https:\/\/secure.gravatar.com\/avatar\/8709732a479614e7a8aa24d3eb1b239f30dc6d90c61464ed495001e7a469d856?s=96&d=mm&r=g"},"magazineBlocksPostCommentsNumber":"0","magazineBlocksPostExcerpt":"America\u2019s biggest investor Michael Burry, who is known for predicting the popular 2008 housing crash and portrayed in The Big Short, has now issued a stark warning about US stocks. According to a report by Business Insider, in his latest Substack post, Burry said he sees the risk of a rapid unwind driven by automated […]","magazineBlocksPostCategories":["\u0b26\u0b47\u0b36 \u0b2c\u0b3f\u0b26\u0b47\u0b36"],"magazineBlocksPostViewCount":1,"magazineBlocksPostReadTime":3,"magazine_blocks_featured_image_url":{"full":["https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg",400,225,false],"medium":["https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg",300,169,false],"thumbnail":["https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/michael-burry.jpg",150,84,false]},"magazine_blocks_author":{"display_name":"admin","author_link":"https:\/\/koshalsambada.in\/author\/admin"},"magazine_blocks_comment":0,"magazine_blocks_author_image":"https:\/\/secure.gravatar.com\/avatar\/8709732a479614e7a8aa24d3eb1b239f30dc6d90c61464ed495001e7a469d856?s=96&d=mm&r=g","magazine_blocks_category":"\u0b26\u0b47\u0b36 \u0b2c\u0b3f\u0b26\u0b47\u0b36<\/a>","_links":{"self":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/posts\/8741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8741"}],"version-history":[{"count":0,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/posts\/8741\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/media\/8742"}],"wp:attachment":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}American investor Michael Burry on volatility at 98-year high
<\/h2>\n<\/p>\nMichael Burry is not happy with reports of
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