It's a reminder that even the smartest traders in the room, the ones who've built entire careers calling bubbles and shorting tops, can be steamrolled when markets detach from reality.

Case in point: "Big Short" investor Michael Burry, who periodically disappears into X hibernation, nuking his account every so often, only to reemerge months later with cryptic warnings like his latest: "Sometimes, we see bubbles."

Days after Burry's bubble post on X, his Scion Asset Management 13F revealed that roughly 80% of his put positions were concentrated in the high-flyers Palantir and Nvidia.

Fast forward one week, and the unthinkable has happened, or perhaps thinkable, given his 2023 "Sell" call...

... Burry's Scion Asset Management terminated its SEC registration on Monday.

By Thursday night, Burry's X post clarified details about his recent bearish bet on Palantir, noting he bought 50,000 option contracts at $1.84 each, representing 100 shares per contract, for a total outlay of about $9.2 million, not the $912 million figure circulated online. The contracts give him the right to sell Palantir shares at $50 in 2027.

"That was done last month. On to much better things, Nov. 25," he wrote.

Burry sent a letter to investors late last month, noting: "With a heavy heart, I will liquidate the funds and return capital — but for a small audit/tax holdback — by year's end."

Almost admitting he is wrong: "My estimation of value in securities is not now, and has not been for some time, in sync with the markets."

The letter is circulating on X and has not yet been confirmed.