Michael Burry closed his hedge fund in October 2025 after warning that AI infrastructure stocks represent a bubble similar to the 2005 subprime mortgage crisis. Drawing parallels between massive capital flows into AI stocks and the CDO purchases that distorted mortgage bonds, Burry placed $1.1 billion in bearish options against Palantir and Nvidia, echoing his successful 2005 short bet that returned 489% to his fund.
Georgia and 40 other states reached a $694 million settlement with Credit Acceptance Corporation over deceptive auto lending practices. Nearly 5,000 Georgia consumers will receive cash payments or debt forgiveness after the company allegedly issued unaffordable subprime loans with hidden fees to vulnerable borrowers it knew would likely default.