📈 Markets & Finance risk-off · 6–18 months
A what‑if from the future

What if China's A-share market crashes more than 20% despite state support?

A renewed A-share crash (>20% drawdown) overwhelms state-buying support as confidence collapses, triggering margin-call cascades reminiscent of the 2015 deleveraging spiral.

12%
our model probability
over 6–18 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 12% · 90% range 1–24% · 30 analogues · measured class vol_spike 67% in 18 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — vol_spike ≈0.7371/yr → 67% in 18 mo67%
Analyst prior · editorial share 18% of the class12%
Pooled · weight 83%13%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)13%
Published12%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 6–18 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. A renewed A-share crash (>20% drawdown) overwhelms state-buying support as confidence collapses, triggering margin-call cascades reminiscent of the 2015 deleveraging spiral. The trigger decomposes into signed root‑shocks — Volatility (VIX) ▲ · China growth ▼ · Risk appetite ▼ · Risk-parity deleveraging ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.1%
hist -1.06–-0.15% · other way -0.31% (n=12)
2Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.9%
hist -5.87–+1.96% · other way +2.35% (n=12)
3Solana SOLon Hyperliquid 📈 chartCrypto▼ -0.8%
hist -16.45–+6.15% · other way -2.36% (n=12)
4MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -0.9%
hist -0.8–+0.27% · other way +23.21% (n=12)
5Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -0.7%
model prior · unmeasured
6Ether ETHon Hyperliquid 📈 chartCrypto▼ -0.6%
hist -12.53–+2.91% · other way +3.62% (n=12)
7S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -0.6%
hist -0.53–+0.37% · other way +0.52% (n=12)
8Tech sector XLK 📈 chartEquity▼ -0.6%
hist -0.47–-0.02% · other way -0.23% (n=12)
9Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -0.5%
hist -2.5–+0.9% · other way +4.72% (n=12)
10Freeport (copper) FCX 📈 chartEquity▼ -0.5%
hist -1.99–+0.67% · other way +0.86% (n=12)
11Copper XCUon Hyperliquid 📈 chartCommodity▼ -0.4%
hist -0.26–-0.11% · other way +3.0% (n=12)
12Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -0.4%
hist -0.26–-0.02% · other way +2.49% (n=12)
13China internet KWEBon Hyperliquid 📈 chartEquity▼ -0.4%
hist -1.88–+0.58% · other way -0.3% (n=12)
14Aussie dollar AUD 📈 chartFX▼ -0.3%
hist -0.31–+0.24% · other way -0.93% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Tech sector -0.6% · Freeport (copper) -0.5% · Aussie dollar -0.3% · High-yield credit -0.3% · Chinese yuan -0.2% · Turkish lira -0.2%

Historical precedent — what analogous events actually did

Across 30 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Evergrande debt crisis - global selloff 2021-09 August 24, 2015 ETF flash crash 2015-08 Israel strikes Iran — Operation Rising Lion 2025-06 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 ASML bookings-miss crash 2024-10 VIX third-highest spike on record 2024-08 Offshore yuan hits a record low 2022-11 China fires ballistic missiles into Japan's EEZ during Taiwan drills 2022-08 Alibaba upsizes buyback to record $25 billion 2022-03 Kaisa Group offshore default 2021-12 Didi removed from China app stores after NYSE IPO 2021-07 Bitcoin May 2021 crash 2021-05 COVID-19 fourth circuit breaker 2020-03 COVID-19 second Level-1 circuit breaker 2020-03 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Apple cuts revenue guidance on China weakness 2019-01 Worst Christmas Eve selloff on record 2018-12 February 2018 hot wage print triggers rate scare 2018-02 North Korea 'fire and fury' nuclear scare 2017-08 China stock-market circuit-breaker fiasco 2016-01 Shanghai A-share bubble peak / crash begins 2015-06 SEC approves Limit Up-Limit Down plan and revised market-wide circuit breakers 2012-05 US-downgrade Black Monday equity rout and VIX spike to 48 2011-08 Egyptian revolution / Mubarak uprising 2011-01 VIX record intraday high of 89.53 2008-10 Shanghai Sneeze global selloff with then-record VIX spike 2007-02 October 27, 1997 mini-crash 1997-10 Asian financial crisis - Thai baht float 1997-07 Tiananmen Square crackdown 1989-06 Hong Kong Stock Exchange four-day closure after Black Monday 1987-10
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
SOL SOLSHORT-15.1% · 5d -18.8%83%11 0.46✓ matches cascade
ETH ETHSHORT-10.7% · 5d -9.8%74%17 0.42✓ matches cascade
MU MUSHORT-5.4% · 5d -2.3%67%30 0.28✓ matches cascade
Volatility VIXSHORT-5.6% · 5d +5.9% ↺ fades65%28 0.26⚠ differs
Gold XAULONG+1.8% · 5d +0.4%62%26 0.21·
AVGO AVGOLONG+2.8% · 5d -1.0% ↺ fades61%24 0.19⚠ differs
NVDA NVDASHORT-1.7% · 5d -0.9%62%26 0.18✓ matches cascade
US dollar DXYLONG+0.3% · 5d +0.1%61%30 0.17·
AMD AMDSHORT-3.3% · 5d -0.8%59%30 0.14✓ matches cascade
NDX NDXSHORT-0.5% · 5d -0.9%57%30 0.12✓ matches cascade
XCU XCUSHORT-0.0% · 5d -1.7%57%26 0.11✓ matches cascade
SMH SMHLONG+0.1% · 5d +0.2%57%26 0.11⚠ differs
KWEB KWEBSHORT-1.6% · 5d -2.6%56%21 0.10✓ matches cascade
High-yield credit HYGSHORT-0.1% · 5d -0.2%57%25 0.10✓ matches cascade

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.