Overview
- Regulatory filings show Scion Asset Management bought roughly $1.1 billion in Q3 put options, including about $912 million targeting Palantir and $186.6 million against Nvidia, representing close to 80% of the fund at quarter‑end.
- Markets reacted swiftly as Palantir fell as much as 16% intraday before closing lower and Nvidia declined several percent, while the Nasdaq logged its biggest one‑day drop in nearly a month and selling rippled into Asia and Europe.
- Palantir drew particular scrutiny for lofty valuation multiples flagged by analysts, whereas Nvidia’s pullback was more contained given its dominant AI chip share and market value around $4.7 trillion.
- Palantir CEO Alex Karp publicly dismissed the short as “batshit crazy” and suggested critics were engaging in market manipulation, escalating a public clash over fundamentals.
- The positions reflect holdings as of September 30 and could have changed since, leaving investors debating whether Burry’s puts are a directional wager or a hedge as volatility persists across AI‑linked stocks.