Markets

Magnificent Seven mega-cap tech collapse

The basket shorts the listed Hyperliquid perps for the seven Magnificent Seven stocks directly. It omits the report’s preferred long RSP hedge and QQQ put-spread convexity because RSP and QQQ were not available in the searches; this is an unhedged direct short basket rather than a relative-value/defined-risk options structure.

The basket

• xyz:MSFT · Short on Hyperliquid · 17% of the basket
• xyz:AAPL · Short on Hyperliquid · 17% of the basket
• xyz:GOOGL · Short on Hyperliquid · 15% of the basket
• xyz:AMZN · Short on Hyperliquid · 14% of the basket
• xyz:META · Short on Hyperliquid · 13% of the basket
• xyz:NVDA · Short on Hyperliquid · 12% of the basket
• xyz:TSLA · Short on Hyperliquid · 11% of the basket

What would prove it wrong

• Magnificent Seven earnings and guidance accelerate while valuations hold or expand.
• Mega-cap tech continues to outperform the equal-weight market and makes sustained new relative highs.
• AI/cloud capex proves highly profitable rather than overbuilt, supporting NVDA, MSFT, AMZN, GOOGL and META multiples.
• Funding or liquidity on the short perps becomes punitive enough that carry overwhelms the thesis.