Burry covers half of his Oracle short bet, calls full-exit reports fake news

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Michael Burry has covered half of his Oracle short position and dismissed reports of a full exit as fake news. The investor wrote on X that he covered half because the trade was winning, after Oracle shares hit a fresh 52-week low of $121.50 on July 18, roughly 63% below their all-time high of $345.72. In a Substack post, Burry explained he sold half of his Oracle January 2027 puts, struck in the low-to-mid $100s, because the position had grown too big, while retaining the other half to maintain short exposure. His bear thesis, centered on Oracle's aggressive AI infrastructure spending, questionable financing, and heavy customer concentration around OpenAI, gained institutional backing when S&P Global Ratings cut Oracle's credit rating to BBB- on July 9, citing extreme concentration risk from OpenAI, which represents roughly half of Oracle's $638 billion backlog, and a projected free cash flow deficit of $42 billion in fiscal 2027. Retail sentiment on Stocktwits turned extremely bullish with extremely high message volume following Burry's clarification, even though his core position remains short. Oracle has also disclosed plans for an additional $20 billion equity issuance later in 2026, which could further pressure the stock.