Michael Burry's Scion Asset Management: SEC Registration Termination and Market Implications

This analysis is based on a Reddit post [1] published on November 13, 2025, claiming Michael Burry is shutting down Scion Asset Management. The post alleges Burry stated his valuation approach is out of sync with markets and includes a letter image with his signature.

The most concrete evidence regarding Scion Asset Management’s status is the termination of its SEC registration effective November 10, 2025 [1][2]. This regulatory action represents a significant operational change, though SEC registration termination does not automatically equate to complete business shutdown. Such terminations can indicate conversion to family office structures, changes in investor composition, or other regulatory reclassifications [1][2].

Michael Burry’s recent activities provide crucial context for understanding these developments. After a two-year social media hiatus, Burry returned to X/Twitter in late October 2025 [1][3], primarily warning about AI sector valuations. His firm’s most recent 13F filing revealed substantial bearish positions through put options on Palantir ($912 million notional value) and Nvidia ($186 million) [1][4]. These positions reportedly triggered sharp market declines in both stocks when disclosed [1].

This potential restructuring follows a historical pattern in Burry’s career. He previously shut down Scion Capital in 2008 after successfully betting against the housing market [5]. The timing suggests Burry may be restructuring operations when market conditions or regulatory requirements change, particularly when his contrarian views diverge significantly from mainstream market sentiment [1][5].

Burry’s status as “The Big Short” investor gives his market views substantial weight. His bearish stance on AI stocks, particularly against high-flying companies like Palantir and Nvidia, represents a significant contrarian position against the prevailing AI investment narrative [1][3][4]. The market reaction to his disclosed positions demonstrates his continued influence on investor sentiment.

Notably, Burry’s X bio currently teases a potential new venture announcement scheduled for November 25, 2025 [1][2]. This suggests the current changes may be transitional rather than terminal. The proximity of this teased announcement to the SEC registration termination indicates a strategic restructuring rather than an abrupt shutdown [1][2].

The Reddit post’s specific claims about a letter stating Burry’s “valuation approach is out of sync with markets” and allegations of “returning capital to investors by year end” remain unverified through official sources [2]. While the sentiment aligns with Burry’s known contrarian philosophy, the specific documentation referenced in the Reddit post could not be independently verified [2].

The disclosure of Burry’s bearish AI positions has already demonstrated the potential for market volatility. Any additional information about Scion’s operational status could trigger further market movements, particularly in AI-related stocks where Burry has established significant short positions [1][4].

The lack of official confirmation regarding Scion’s complete shutdown creates information uncertainty. While SEC registration termination is verified [1][2], the exact nature of operational changes and their implications for current investors remain unclear, potentially affecting market participants’ decision-making processes.

If Burry is indeed restructuring his investment vehicle, this could represent an opportunity for new investment strategies or approaches. His teased November 25 announcement [1][2] suggests potential new ventures that could offer alternative investment frameworks aligned with his valuation methodology.

• Scion Asset Management’s SEC registration terminated November 10, 2025 [1][2]
• Burry maintains significant bearish positions on AI stocks via Palantir and Nvidia puts [1][4]
• Burry returned to social media in October 2025 after two-year hiatus [1][3]
• New venture announcement teased for November 25, 2025 [1][2]

• Complete shutdown with letter explaining valuation approach misalignment [2]
• Capital return to investors by year-end [2]

• Historical precedent: Scion Capital shutdown in 2008 after successful housing market bet [5]
• Current portfolio includes diversified holdings beyond AI shorts [6]
• Burry’s market influence remains significant, particularly in contrarian positions [1]

The analysis reveals that while substantial evidence supports significant operational changes at Scion Asset Management, the specific nature and extent of these changes require further official clarification. The SEC registration termination [1][2] represents the most concrete evidence of restructuring, though the complete shutdown claim from the Reddit source [1] remains unverified through official channels.