Michael Burry, the eccentric hedge fund manager whom the 2015 blockbuster ‘The Big Short’ was based on, is being called out by the crypto community on Twitter today after asking how to short cryptocurrencies.
“Ok, I haven’t done this before, how do you short a cryptocurrency,” Burry started off by writing in a tweet Wednesday night US time, after having shared his rather negative feelings towards crypto in a number of other tweets before.
“Do you have to secure a borrow? Is there a short rebate? Can the position be squeezed and called in? In such volatile situations, I tend to think it’s best not to short, but I’m thinking out loud here,” the former hedge fund manager continued by writing in the tweet.
The tweet from Burry, which was later deleted, was quickly picked up by members of the crypto community, who questioned how it is possible that one of the world’s most famous short sellers has no clue how to short crypto.
Among them was the popular crypto trader Cobie, who pointed out that Burry has gone from “manually researching hundreds of thousands of loans inside the CDOs [collateralized debt obligation] to struggling to use Google for ‘how to open a short on bitcoin’.”
Also noticing the apparent incompetence on the part of the famous investor was crypto exchange Bitfinex Chief Technology Officer Paolo Ardoino, who asked Burry to “stop ruining movies for me”:
Meanwhile, Zhu Su, CEO of crypto investment fund Three Arrows Capital, said that Michael Burry, in his view, would be “max long bitcoin” if he was 22 years old today. “Age changes a man, and if he’s not careful, cringes him,” the crypto investor added.
The question on shorting crypto from Burry came after the legendary money manager and short-seller earlier on Wednesday called out the activity on some crypto-related Twitter accounts, saying “Crypto/Meme bots and pumpers reply to big accounts in huge numbers for the promotion,” while adding:
“Deleting tweets knocks it back. Going Private allows tools to discourage them. But it’s breathtaking, this religion of real and fake people. The speculation probably tops anything in history.”
Despite Burry suggests that he might not know how the crypto market operates, most members of the crypto community know that there are a number of ways to short a cryptocurrency, such as these 7 Ways to Short Crypto.
Among the most popular ways is to simply short it on one of the many spot crypto exchanges that offer margin trading, or to sell a futures contracts either on a crypto derivatives exchange or on the Chicago Mercantile Exchange (CME), which tend to be more popular among institutional traders.