Michael Burry, the investor famed for predicting the 2008 subprime mortgage crisis and portrayed in "The Big Short," is stepping away from asset management. According to the latest SEC filings, his firm Scion Asset Management LLC officially terminated its registration on November 10, 2025.

A letter dated October 27, purportedly signed by Burry and circulating on social media platform X, revealed plans to liquidate his funds by year-end and return capital to investors. "It is with a heavy heart that I announce the liquidation of these funds, retaining only minimal reserves for audit/tax purposes," Burry wrote. "The market’s valuation of securities has diverged from my assessment for an extended period." While the letter’s authenticity remains unverified, multiple media outlets confirmed Scion’s deregistration in SEC records.

Bruno Schneller, Managing Director at Erlen Capital Management, noted, "Burry’s move isn’t an exit—it’s a withdrawal from a game he views as fundamentally distorted."

**Valuation Disconnect: Burry’s Skepticism** Scion, managing $155 million as of March, has long been seen as a barometer for bubble risks. Burry’s remarks suggest renewed skepticism toward market valuations, particularly in AI and big tech. Recently, Scion disclosed short positions in AI darlings Nvidia (NVDA.US) and Palantir (PLTR.US), signaling caution toward the AI-driven rally. Burry clarified on X that his Palantir bet was $9.2 million (not $912 million), involving 100 put options expiring in 2027 at a $50 strike price—executed last month.

He further criticized tech giants like Microsoft (MSFT.US), Google (GOOGL.US), Oracle (ORCL.US), and Meta (META.US) for allegedly inflating earnings by extending asset lifespans while pouring billions into Nvidia chips and servers. Burry estimated these accounting practices could understate depreciation by ~$176 billion from 2026–2028, artificially boosting profits.

**Short Sellers’ Struggles** Bearish bets have grown unpopular amid tech euphoria and retail investor fervor. Burry joins peers like Hindenburg Research, which shuttered earlier this year after high-profile shorts, and Jim Chanos, who clashed with Michael Saylor’s Bitcoin-heavy Strategy (MSTR.US) over valuation concerns.

**A Contrarian Exit** Burry’s liquidation underscores his value-investing ethos—when prices detach from fundamentals, he walks away. With AI stocks driving record highs, his departure is seen by some as a symbolic protest. JPMorgan Asset Management noted AI-related stocks contributed 75% of the S&P 500’s gains since ChatGPT’s 2022 debut.

"Burry likely sees valuations as detached from reality," a London-based analyst remarked. "For a fundamentalist, quitting an irrational market is rational."

Burry’s next steps—potentially a family office or private investments—remain unclear. His November 25 announcement may offer clues. Schneller speculated he might manage personal capital under lighter regulation. Regardless, the "prophet of crises" has again made a statement: when prices defy value, exiting is the purest conviction.