Analysis: Unverified Claims of Michael Burry Shutting Down Scion Asset Management

This analysis is based on an unverified Reddit post claiming Michael Burry is shutting down Scion Asset Management, stating his valuation approach is “out of sync with markets.” However, extensive verification across major financial news outlets, regulatory filings, and official sources found no credible evidence supporting this announcement as of November 13, 2025 [0][1][2][3][4][5].

The claim originates from a Reddit post with an alleged letter containing Burry’s signature. However, this primary source lacks independent verification and has not been corroborated by any established financial media outlets including Bloomberg, Reuters, Wall Street Journal, Financial Times, or CNBC [0][1][2][3][4][5]. The absence of coverage by Tier 1 financial news sources significantly undermines the claim’s credibility.

While the shutdown claim remains unverified, several verified facts provide important context:

• Scion Asset Management disclosed massive bearish positions against AI stocks through 13F filings [2][3][4][5]
• Put options on 5 million Palantir shares ($912 million notional value) [4][5]
• Put options on 1 million Nvidia shares ($187 million notional value) [4][5]
• These bearish positions constituted approximately 80% of Scion’s reported portfolio value [2]
• Complete liquidation of positions in UnitedHealth Group, Regeneron, Meta Platforms, Estée Lauder, JD.com, and Alibaba [2]

• Burry returned to X (formerly Twitter) on October 30, 2025, after a two-year hiatus with coded warnings about AI bubble [1]
• Active social media presence including November 4, 2025 post: “Fake news! I am not 5’6” (not that there is anything wrong with that). And journalists reporting on 13Fs, none more fake" [1]
• Teased that “more detail” was coming on November 25, 2025 [1]

The rumor gains some plausibility from historical context - Burry previously shut down Scion Capital in 2008 after successfully shorting the housing market, reopening as Scion Asset Management in 2013 [6]. The current fund manages approximately $155 million as of 2024 [6].

The timing of this unverified rumor coincides with Burry’s most aggressive bearish positioning to date against the AI sector [2][3][4][5]. His portfolio has shifted dramatically to nearly 80% bearish options, suggesting strong conviction about an impending AI market correction.

Burry’s recent social media activity creates a fertile environment for speculation [1]. His cryptic warnings and criticism of financial journalism (“none more fake”) may contribute to rumor generation and spread, particularly on platforms like Reddit where verification standards are lower.

If the shutdown claim were true, it would follow Burry’s established pattern of closing funds after major contrarian successes [6]. However, without official confirmation, this remains speculative correlation rather than established causation.

The primary claim lacks verification from credible sources, representing significant misinformation risk [0][1][2][3][4][5].

Unverified rumors about prominent investors could potentially influence market behavior, particularly in the AI sector where Burry has substantial bearish positions [2][3][4][5].

For investors and market participants acting on unverified information, there exists substantial risk of making decisions based on false premises.

The situation presents an opportunity to monitor official channels (SEC filings, company announcements, major financial news) for potential confirmation or denial.

Burry’s verified bearish positioning provides valuable insight into potential AI sector vulnerabilities, independent of the unverified shutdown claim [2][3][4][5].

• Michael Burry operates Scion Asset Management (founded 2013) [6]
• Fund holds massive bearish positions against AI stocks in Q3 2025 [2][3][4][5]
• Burry has returned to social media with market warnings [1]
• Historical precedent exists for fund closure after successful contrarian bets [6]

• Announcement of Scion Asset Management shutdown [Event Source]
• Letter with Burry’s signature explaining valuation approach [Event Source]
• Specific timing and reasons for alleged closure [Event Source]

• No official confirmation from Scion Asset Management
• No regulatory filings indicating fund wind-down procedures
• Absence of coverage by established financial media
• No independently verified evidence of the alleged letter’s authenticity

The analysis reveals that while Michael Burry has indeed taken an extremely bearish stance on AI stocks through Scion Asset Management [2][3][4][5], the claim of fund closure remains unverified by credible sources as of the current timestamp [0][1][2][3][4][5].