Michael Burry's analysis of 1,000+ Nasdaq 100 company reports from the past decade found that tech earnings are overstated by 42% — roughly $1.7 trillion — because companies aren't properly accounting for stock-based compensation (SBC) costs under GAAP accounting rules. This means investors in major tech stocks have been paying inflated prices based on earnings that didn't actually exist. For the 119+ U.S. mutual funds and 401(k)s with 50%+ tech allocation, and millions of Americans holding tech-heavy index funds, a market correction to realistic valuations could mean significant losses, especially for near-retirees who need growth to beat inflation. Burry's previous warnings about AI hyperscalers artificially boosting earnings through asset depreciation understatement suggest this tech valuation concern is part of a broader pattern he's been tracking.