Let’s put aside the euphoric praise that poured out of the financial press yesterday. SpaceX’s long-awaited IPO has finally arrived, and, as expected, ordinary investors are happily lining up to make a fortune by investing in speculative tech companies. It’s a bizarre case of self-harm that deserves to be discussed in a psychiatric journal, not a market report.

If you recently bought SpaceX shares at a high price and consider yourself a visionary leader of the interplanetary economy, I’ll ridicule your wisdom and say it bluntly: you’re actually “exit liquidity” (meaning you provide an exit route for large investors).

My quantitative model, which has been tracking market liquidity for the past three quarters, clearly warned that a major aerospace company’s IPO in an already fragile system could be disastrous. The reality isn’t just bad; it’s an insult to basic mathematics. SpaceX launched at a price not based on the company’s excellent performance, but rather on the fantasy of seamlessly colonizing three neighboring solar systems. Large institutional investors (smart capital), those who read S-1 prospectuses instead of retweeting rocket emojis, passed their early risk onto the general public, consumed by speculation. Essentially, you’re investing in a billionaire’s obsession with infrastructure and accepting the risk of losing money when next-generation launch vehicles miss quarterly revenue targets by billions of dollars.

But the devastation for the average investor is only just beginning. The real macroeconomic tragedy or joke, if you’re short, is how this massive investment will accelerate the bursting of the AI bubble.

For the past few years, the entire market has been artificially inflated by misconceptions and mass psychosis. This thinking dictates that any loss-making startup using the “large language model” (LLM) should be worth as much as the GDP of a small European country. This algorithm-based fraud (miracle drug) constantly needed money from ordinary investors to maintain its absurd prices. Yesterday, that money supply suddenly and violently collapsed.

The abrupt withdrawal of the SpaceX IPO acted as a massive liquidity vacuum, sucking out any remaining funds from ordinary investors’ brokerage accounts. Unwitting investors rushed to sell their small stakes in highly valued AI ventures to buy overvalued shares of rocket companies. What happens when the foundations of a rapidly growing and momentum-driven technology sector, “unwise investment money”, suddenly shift to low Earth orbit? It’s suffocating.

An AI bubble doesn’t require a major technical failure; it merely requires a shortage of additional, unwise investors willing to buy shares at high prices. The SpaceX IPO quickly attracted the remaining speculative capital in the market, perpetuating this shortage. Heavily indebted venture capital funds, founded on the belief that individual investors would eventually buy their overvalued AI shares, now face a terrifying reality: ordinary buyers are no longer in the market. They are trapped in overvalued space stocks, helplessly waiting for dividends from Mars.

Yesterday’s IPO wasn’t a triumph of human ingenuity; it was a classic example of wealth transfer. The countdown has indeed begun, but it’s not about the launch. These are the largest, consecutive margin calls the tech sector has faced in two decades. Build your portfolio accordingly if you still have some headroom.

Tap..🖖

(My criticism states the current market scenario. But i still believe Elon Musk is one of  the biggest net positive human being to our society. His endeavours must be cherished, but with a pragmatic lens.)