Why are the long-silent short sellers appearing at this moment?

NVIDIA’s sudden drop this time around immediately brought to mind the name: Michael Burry.

This legendary trader, who first gained fame by betting against the US housing crisis, has been frequently speaking out on social media lately. First, he outright declared that AI is a bubble, then he personally shorted NVIDIA, and also took a position in Palantir (later claiming to have closed the position). What’s more interesting is that he gave himself a codename: Cassandra—the cursed prophetess from Greek mythology, whose every prediction was ignored.

Burry is not the fuse, but definitely a magnifying glass

Some blame Burry for turning NVIDIA from a 5% gain into a 3% decline, but that logic needs correction. The real underlying reason is that the market itself has been stretched too tight—US stocks have been hijacked by AI sentiment for too long, capital rotation is becoming increasingly weak, volatility has clearly expanded, and trading volume is starting to shift.

Burry’s appearance at this moment is not because he accurately predicted the short-term trend (he’s never good at that), but because he always stands on the opposite side when market sentiment reaches extremes. His true value lies in—he speaks out what all skeptical participants are holding back: “Guys, isn’t this too intense?”

This is the role of Cassandra. Not a divine oracle, but a mirror.

The point is not about right or wrong, but about timing

What’s more worth observing is: why did Burry choose to step out now?

This timing itself reveals subtle changes in the market. The AI concept is at a high, trading volume has begun to shrink, defensive capital is quietly entering, and the bullish voices are being challenged. Burry’s appearance now is more like the market going through a collective “self-doubt period”—and this time, the market is starting to seriously listen to his voice, no longer mocking his opposing stance.

What does this indicate? It shows that the bullish mindset has quietly shifted from “unconditionally optimistic” to “optimistic with a question mark.”

Will NVIDIA still go up? Of course, but the rhythm has changed

The long-term trend is fine. The commercial value of AI is real, and the industry outlook is genuine. But the short-term sentiment is changing—gains have been largely digested, holders are starting to feel tired, and some profit-taking positions are quietly exiting.

Burry himself is not some magician; he simply verbalized the questions insiders already knew. Cassandra’s story tells us that the most terrifying thing is not wrong predictions, but predictions that are forced to come true early. And now, the market is starting to seriously listen to Cassandra’s words, which itself is a signal.