During 2007, under pressure from investors, Michael Burry liquidated most of Scion's credit default swaps at a substantial profit.

True: contemporaneous or later records (Scion investor letters, Michael Lewis's The Big Short, press reports or Burry's own documented statements) show that during calendar 2007 Scion sold or unwound most (more than half) of its credit default swap positions at a substantial overall profit, with investor pressure as a factor. Mostly true: most positions were liquidated at a substantial profit, but the timing extended slightly into early 2008, or the role of investor pressure is unclear. Mixed: only about half of the positions were liquidated in 2007, or the profit was modest. Mostly false: only a minority were liquidated in 2007, or most were sold later. False: the records show the bulk were held well past 2007, or that they were closed without a substantial profit.

Set before the research began.

1. E1 The Big Short Chapter 8-Afterword Summary & Analysis | SuperSummary SuperSummary

   “Michael Burry’s Scion fund sells its credit default swaps at enormous markups: “By the end of the year, in a portfolio of less than $550 million, he would have realized profits of more than $720 million” (223).”

2. E2 The Big Short Chapter 8-Afterword Summary & Analysis | SuperSummary SuperSummary

   “By late 2006, however, his fund is losing money and investors lose patience, lining up to get their money back”

3. E3 Scion Asset Management - Wikipedia Wikipedia Own record

   “Scion made $725 million for investors with Burry personally making $100 million.”

The evidence shows that Scion sold credit default swaps at large markups and realized profits of more than $720 million (about $725 million) by the end of an unnamed year [E2][E4], and that investors were losing patience by late 2006 [E3]. No evidence item names 2007 as the year of the sales or says what share of the positions was sold, so the criteria cannot be applied.