Remember when everyone thought they had figured out the market? Michael Burry, the investor famous for calling out financial bubbles, recently opened up about something most traders would rather forget—he completely missed the GameStop gamma squeeze phenomenon.

It wasn't just any market move. The sheer scale of how options dynamics created a feedback loop that broke traditional Wall Street playbooks caught even seasoned professionals off guard. What made this so remarkable? The coordination between retail interest and the mathematical mechanics of options expiration cycles created something unprecedented in modern market history.

Burry's admission is telling. When someone with his track record acknowledges they didn't see it coming, it raises interesting questions about market unpredictability. Gamma squeezes occur when options dealers must hedge by purchasing the underlying asset as prices rise, creating a self-reinforcing cycle that can overwhelm traditional risk management frameworks.

For traders watching crypto markets today, the lesson isn't that you need perfect foresight—it's that understanding how leverage, derivatives, and crowd behavior interact matters far more than trying to predict any single outcome. The GameStop saga exposed how fragmented traditional finance actually is when faced with unexpected collective action.