🛢 Energy & Commodities risk-off · 1–3 years
A what‑if from the future

What if Coal-retirement wave outpaces firm replacement, margins thin?

Accelerated coal-plant retirements remove dependable capacity faster than gas, nuclear or firmed renewables replace it, thinning reserve margins across MISO and the Southeast and raising shortfall risk in peak seasons.

28%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 28% · 90% range 17–39% · 40 analogues · measured class energy 99% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — energy ≈1.4869/yr → 99% in 3 yr99%
Analyst prior · editorial share 30% of the class30%
Pooled · weight 87%29%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)29%
Published28%

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 1–3 years 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. Accelerated coal-plant retirements remove dependable capacity faster than gas, nuclear or firmed renewables replace it, thinning reserve margins across MISO and the Southeast and raising shortfall risk in peak seasons. The trigger decomposes into signed root‑shocks — Natural gas ▲ · Financial conditions ▲ · Inflation surprise ▲ · Risk appetite ▼ — 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
1Solana SOLon Hyperliquid 📈 chartCrypto▼ -0.6%
hist -1.71–+2.76% · other way +0.49% (n=10)
2Ether ETHon Hyperliquid 📈 chartCrypto▼ -0.5%
hist -0.77–+0.06% · other way +2.69% (n=10)
3Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -0.5%
model prior · unmeasured
4Natural gas NGon Hyperliquid 📈 chartCommodity▲ +0.4%
hist -4.66–+1.52% · other way +14.47% (n=12)
5MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -0.4%
hist -0.89–+0.13% · other way +20.8% (n=12)
6Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -0.3%
hist -0.28–+0.68% · other way +0.14% (n=12)
7Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.3%
hist -2.31–+6.87% · other way -11.64% (n=12)
8Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -0.2%
hist -0.12–-0.07% · other way +6.03% (n=10)
9Tech sector XLK 📈 chartEquity▼ -0.2%
hist -0.43–+0.68% · other way +0.08% (n=12)
10High-yield credit HYG 📈 chartRate▼ -0.2%
hist -0.16–+0.04% · other way -0.36% (n=12)
11S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -0.1%
hist -0.49–+0.14% · other way -0.53% (n=12)
12Coinbase COINon Hyperliquid 📈 chartEquity▼ -0.2%
hist -2.87–+4.42% · other way +21.85% (n=10)
13Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -0.2%
hist -0.56–+1.2% · other way +0.43% (n=12)
1430y Treasury yield DGS30 📈 chartRate▲ +1bp
hist -0.05–+1.6% · other way +4.5% (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 -0.2% · High-yield credit -0.2% · 30y Treasury yield +1bp · 10y Treasury yield +1bp

Historical precedent — what analogous events actually did

Across 40 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.

PJM grid emergency during Winter Storm Elliott 2022-12 Texas grid failure during Winter Storm Uri 2021-02 Northeast blackout cascading grid failure hits ~55 million 2003-08 Silver Thursday 1980-03 Gold peaks at $850 1980-01 1979 Iranian Revolution oil shock 1979-01 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Henry Hub natural gas falls to an all-time inflation-adjusted low on record output 2024-11 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Niger coup d'etat 2023-07 First Republic Bank seized and sold to JPMorgan 2023-05 Regional-bank panic deepens after Signature seizure 2023-03 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 Germany agrees Uniper bailout 2022-07 Kaisa Group offshore default 2021-12 Turkish lira record low on rate cuts 2021-11 European gas crisis intraday record spike 2021-10 California rolling blackouts during a record heatwave 2020-08 Gold closes above $2,000/oz for the first time 2020-08 Norilsk Nickel Arctic diesel spill 2020-05 WTI crude futures settle negative as demand collapses 2020-04 February 2018 hot wage print triggers rate scare 2018-02 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 HYG record outflows in 2014 high-yield rout 2014-10 Mt. Gox collapse 2014-02 Mt. Gox halts withdrawals 2014-02 Gold futures velocity-logic flash crash 2014-01 Cyprus deposit bail-in 2013-03 Spain requests EUR100bn bank bailout 2012-06 Bankia nationalised in Spain's banking crisis 2012-05 Gold all-time peak of $1,921/oz 2011-09 Portugal requests EU-IMF bailout 2011-04 Egyptian revolution / Mubarak uprising 2011-01 Greece first EU/IMF bailout 2010-05 Greece requests EU/IMF bailout 2010-04 Anglo Irish Bank nationalisation 2009-01 Oil collapses from $147 to the $30s as the GFC craters demand 2008-12
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
NDX NDXLONG+0.7% · 5d -0.8% ↺ fades68%37 0.29⚠ differs
NG NGSHORT-4.3% · 5d -3.6%64%37 0.24⚠ differs
Bitcoin BTCSHORT+-0.0% · 5d -1.2%62%23 0.20✓ matches cascade
Volatility VIXLONG+6.2% · 5d +5.0%60%37 0.16✓ matches cascade
COIN COINLONG+4.7% · 5d +1.6%59%14 0.15⚠ differs
SMH SMHLONG+1.2% · 5d -0.5% ↺ fades57%37 0.12⚠ differs
US dollar DXYLONG+0.5% · 5d +0.2%57%40 0.12·
10y yield DGS10SHORT0bp · 5d 0bp56%40 0.11⚠ differs
MSTR MSTRSHORT-0.6% · 5d -2.8%56%37 0.09✓ matches cascade
XLK XLKLONG+0.8% · 5d -0.6% ↺ fades55%37 0.08⚠ differs
SOL SOLLONG+3.0% · 5d -7.5% ↺ fades55%19 0.07⚠ differs
Gold XAULONG+0.3% · 5d -0.1% ↺ fades52%37 0.04·
ETH ETHSHORT-0.5% · 5d -2.6%40%20 0.00✓ matches cascade
High-yield credit HYGLONG+0.1% · 5d -0.1% ↺ fades39%36 0.00⚠ differs

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.