Michael Burry, the investor made famous by the 2008 financial crisis trade, used X on Friday to blast Nasdaq’s proposed rule changes ahead of SpaceX‘s anticipated initial public offering (IPO).



“This is the most SHAMELESS structural manipulation of a major index I’ve ever seen,” Burry wrote.



His target: two specific rule proposals Nasdaq quietly floated in February that critics say were designed around a single company.



SpaceX, the Tesla Inc (NASDAQ:TSLA) CEO Elon Musk-led commercial spaceflight company, is reportedly targeting a $1.75 trillion valuation for what could be the largest IPO in history. 



Reuters reported the company is leaning toward a Nasdaq listing, potentially as early as June. Musk appeared to confirm the $1.75 trillion figure on X on March 2.



<h2>The ‘Fast Entry’ Rule: 15 Days, No Waiting</h2>



Currently, new public companies typically wait up to 12 months before qualifying for major index inclusion. That seasoning period allows real price discovery and protects passive investors from untested stocks.



Nasdaq’s proposed “Fast Entry” rule would scrap that.



Under the proposal, any newly listed company with a market cap ranking in the top 40 of Nasdaq-100 members could enter the index after just 15 trading days — with no seasoning period and no liquidity requirements, Burry said.



Famed short-seller says passive investors could become exit liquidity for insiders if proposed index changes go through.



Gerber Kawasaki Wealth &amp; Investment Management CEO Ross Gerber flagged this earlier. He wrote on X: “Highly unusual to demand being included in the index from the IPO. This guarantees buyers of passive funds to support the stock without the typical period when markets find their value… it also helps for insider selling.”



<h2>The 5x Float Multiplier: The ‘Real Scandal’</h2>



Burry called this the worse proposal. Any stock with under 20% free float would be weighted at five times its actual float, capped at 100%.



At a 5% float, SpaceX’s $1.75 trillion valuation yields roughly $87.5 billion in publicly tradable stock. The multiplier would force passive funds to buy as if SpaceX were worth $437.5 billion. 



QQQ alone manages nearly $400 billion. The full Nasdaq-100 ecosystem — across ETFs, mutual funds, structured notes, and derivatives — represents over $1.4 trillion in exposure.



<h2>Who Profits?</h2>



Passive buying inflates the price. Insiders — holding 95% of shares — sell when lock-ups expire. “Your 401(k) is the exit liquidity,” Burry wrote.



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<blockquote>Must read – this is free and not me. https://t.co/DoUrXc6VGK This is the most SHAMELESS structural manipulation of a major index I've ever seen. SpaceX is preparing what could be the largest IPO in history. Target valuation: $1.75 trillion. That would make it the…— Cassandra Unchained (@michaeljburry) March 13, 2026</blockquote>
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Michael Burry criticizes Nasdaq's proposed rule changes that could allow SpaceX to enter the Nasdaq-100 just 15 days post-IPO, warning of potential risks for retail investors. He highlights two key proposals: the 'Fast Entry' rule, which eliminates the typical 12-month waiting period for new public companies, and a '5x Float Multiplier' that would inflate SpaceX's market cap for index inclusion. Burry argues this could lead to forced passive buying, benefiting insiders at the expense of retail investors, labeling it as a significant structural manipulation of the index.

- Michael Burry criticized Nasdaq's proposed rule changes that could significantly benefit SpaceX ahead of its anticipated IPO, arguing it represents a manipulation of the index.  
- The new "Fast Entry" rule would allow companies like SpaceX to join the index within 15 days without the usual waiting period, while the "5x Float Multiplier" would artificially inflate stock valuations.  
- Burry warns that these changes could lead passive investors to inadvertently support inflated stock prices, ultimately benefiting insiders after the IPO.

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Michael Burry Flags 'Structural Manipulation' Risk In Nasdaq Rules Ahead Of Potential SpaceX Listing