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'Big Short' Burry Warns of Losses 'the Size of Countries'

Scion Asset Management's Michael Burry warns of 'the mother of all crashes' if crypto or meme stocks fall.

Michael Burry, made famous through his depiction by Christian Bale in the film "The Big Short," reportedly tweeted a series of warnings about losses "the size of countries" in the event of cryptocurrency or meme-stock declines.

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"All hype/speculation is doing is drawing in retail before the mother of all crashes,” Burry wrote on Twitter before the posts were deleted, according to Bloomberg.

“When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed.”

In 2019, Burry, the head of Scion Asset Management, said that he was long the videogame retailer GameStop  (GME) - Get Report, which became the darling of the meme stock crowd. 

He changed his opinion this year, tweeting in January that "what is going on now — there should be legal and regulatory repercussions. This is unnatural, insane, and dangerous.”

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Earlier this month, GameStop posted a narrower-than-expected fiscal-first-quarter loss.

Last month, Burry unveiled another significant bet, against electric-vehicle maker Tesla  (TSLA) - Get Report.

Burry, who made billions betting against the U.S. housing market in the mid-2000s, had expressed concern about the fact that Tesla generates a large portion of its profits from the sale of regulatory credits as opposed to the production of its Model 3 and Model S sedans.

Burry was a doctor, but after gaining his M.D. at the Vanderbilt University School of Medicine, he was an early adopter of discussing stock trades on online message boards and switched to professional investing.

"The Big Short," which was based on Michael Lewis's book "The Big Short: Inside the Doomsday Machine," in 2016 was nominated for five Academy Awards and won for best adapted screenplay.