Positioning in AI mega-caps was extremely crowded. When liquidity thins and funding costs edge up, even small flows can trigger sharp de-risking. So the tape feels painful — but structurally, earnings revisions have not cracked yet.
Burry’s short is a valuation duration protest. For it to become “Big Short 2.0”, you need two conditions simultaneously: a material liquidity shock and negative forward earnings revisions. We have only the first partially.
As long as corporate buybacks remain active, earnings guidance stays firm, and there is no sudden policy shift, the bull trend can still extend — but volatility will rise.
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