A high-stakes feud is breaking into public view as Palantir (PLTR) chief executive Alex Karp fires back at Michael Burry, accusing the famed “Big Short” investor of triggering market panic to exit a bearish wager.
Earlier this week, reports emerged that Burry’s Scion Asset Management had placed puts, representing more than five million PLTR shares worth $912.1 million.
Traders use put options to either hedge against any potential corrective moves or speculate that the underlying asset will collapse.
In a new CNBC interview, Karp alleges that Burry is engaging in market manipulation, trying to short PLTR in an effort to induce panic and drive the price of the stock down to save his earlier positions.
“But actually, in the Burry case, I actually think what was happening was market manipulation. I strongly suspect he was getting out of his position. And to get out of his position, he had to screw the whole economy by besmirching the best financials ever. Again, financials that are helping the average person as investors on the battlefield, et cetera, et cetera.”
In an earlier CNBC interview, Karp said that Palantir’s stellar performance was consistently burning PLTR bears and short sellers.
“Of course, when I hear short sellers attacking what I believe is clearly the most important software company in America and therefore in the world in terms of our impact, simply to make money and trying to call the AI revolution into question…
And I’ll tell you what, though, it’s crazy motivating, because I’ll tell you why the short sellers are constantly getting screwed by Palantir because every time they short us, we just are tripling down on getting the better numbers, and part of that, honestly, to make them poorer.”
As of Friday’s close, PLTR is hovering at $177.93.
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