Michael Burry Meme vs. Reality: No 2025 Admission of Error, Doubles Down on AI Shorts Amid Market Volatility

A viral r/wallstreetbets meme (17.7k upvotes) humorously claimed Michael Burry admitted being wrong about market predictions before a minor sell-off (-1% to -1.5%), sparking discussion on timing challenges of shorting. Key comments: users joked Burry was “one of us” (CommandeRoot03), argued the market’s irrationality aligned with his warnings (versace_drunk), clarified he moved to a family office to avoid 13F disclosures (EnvironmentalFlow592), and downplayed the sell-off as typical (Jesta23). [9]

• No evidence of Burry admitting error in 2025: Contrary to the meme, Burry doubled down on bearish bets with $1.1B in short positions against Nvidia (NVDA) and Palantir (PLTR), calling AI a “bubble” [2][7].
• Fund deregistration: On Nov 10, 2025, Burry dissolved Scion Asset Management (public fund) to a family office, avoiding SEC disclosures [4]. Scion’s 3-year return was -17.87% amid tech surges [3].
• Market decline drivers: November’s S&P 500 drop (worst since 2008) stemmed from tariffs, inflation, and high valuations—not Burry’s statements [6].

The meme’s claim was unfounded; Burry remains confident in his bearish AI thesis. Reddit’s timing critiques align with his historical challenges (12 failed crash bets over 8 years [3]). His family office move reduces transparency, limiting investor visibility into his positions [1].

• Risks: If Burry’s AI bubble bet fails, his short positions could incur losses; if correct, NVDA/PLTR may face significant declines. Reduced transparency from family office makes tracking his moves harder [4].
• Opportunities: Investors can prioritize macro factors (tariffs, inflation) over viral memes for market timing [6]. Monitor AI sector valuations for potential bubble signals [5].