Michael Burry effect just sent shockwaves through Wall Street. The “Big Short” legend bet over $1.1 billion against Nvidia and Palantir, and within three days, nearly $700 billion vanished from AI stocks. Nvidia slid 4%, Palantir crashed 8%, and tech investors panicked over fears of an AI bubble burst. Burry’s massive put options sparked the steepest AI selloff since 2023, reviving memories of 2008’s crash and raising the question—has the AI hype finally gone too far?