🛢 Energy & Commodities risk-off · Tail risk
A what‑if from the future

What if a solar superstorm burns out power grids for months?

A super-Carrington event blacking out grids for months is a real-economy heart attack, not a 'tight financial conditions' crypto-liquidity story: bid gold and long-dated bonds (Fed forced to ease into a supply collapse), short industrials and copper as demand evaporates. The closest analogue is the 1859 Carrington event scaled to a wired civilization — no clean market precedent, so size it as a fat-tail hedge, not a base case. The current crypto-beta cascade badly understates the hit; transmission is global and simultaneous, so diversification fails.

6%
our model probability
over Tail risk
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 6% · 90% range 0–12% · 40 analogues · measured class growth 100% in 10 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — growth ≈1.8868/yr → 100% in 10 yr100%
Analyst prior · editorial share 3% of the class3%
Pooled · weight 87%6%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)6%
Published6%

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 Tail risk 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 solar event beyond Carrington induces continent-scale transformer burnout, blacking out grids for months across hemispheres. The trigger decomposes into signed root‑shocks — Global growth ▼ · Geopolitical risk ▲ · Risk appetite ▼ · Industrial demand ▼ — 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
1Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +7.1%
hist +0.57–+8.18% · other way -0.14% (n=11)
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -3.5%
hist -2.29–-0.96% · other way -0.16% (n=11)
3Solana SOLon Hyperliquid 📈 chartCrypto▼ -2.3%
hist -4.43–+2.82% · other way -3.28% (n=10)
4Tech sector XLK 📈 chartEquity▼ -2.4%
hist -1.14–+0.21% · other way -0.02% (n=11)
5MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -2.3%
hist -1.76–+3.78% · other way +30.92% (n=11)
6Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -1.9%
hist -1.29–+0.14% · other way +3.27% (n=11)
7S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -1.9%
hist -1.48–-0.45% · other way -0.37% (n=12)
8Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -1.8%
model prior · unmeasured
9Ether ETHon Hyperliquid 📈 chartCrypto▼ -1.6%
hist -6.52–+2.25% · other way +6.79% (n=10)
10Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -1.4%
hist -1.03–+0.32% · other way +6.07% (n=11)
11Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -1.3%
hist -2.83–+0.47% · other way +7.78% (n=10)
12AMD AMDon Hyperliquid 📈 chartEquity▼ -1.3%
hist -1.86–+0.03% · other way +0.39% (n=11)
13Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.3%
hist -1.71–+3.1% · other way +2.35% (n=11)
14Micron MUon Hyperliquid 📈 chartEquity▼ -1.3%
hist -1.86–+0.06% · other way +0.15% (n=11)

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 gold hedge.
Also moves (not yet on Hyperliquid): Tech sector -2.4% · High-yield credit -1.0% · Turkish lira -0.7% · Freeport (copper) -0.7% · Financials -0.7% · Indian rupee -0.6%

Why we may diverge from history

Trust the cascade: NOC's -4.5% leans on 1991-coup and broad-risk windows, MU/SMH/SPX positives are tariff-window beta and AI-capex; none sample a continent-scale grid-burnout shock, so base rates are unreliable.

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.

Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 Egyptian revolution / Mubarak uprising 2011-01 Soviet August coup attempt against Gorbachev 1991-08 Gold peaks at $850 1980-01 Iran hostage crisis / US freezes Iranian assets 1979-11 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 Israel strikes Iran — Operation Rising Lion 2025-06 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Niger coup d'etat 2023-07 Wagner Group mutiny against the Kremlin 2023-06 Tin hits nominal record on LME above $48,000/t 2022-03 Burkina Faso coup d'etat 2022-01 Mali coup d'etat 2020-08 Gold closes above $2,000/oz for the first time 2020-08 WTI crude futures settle negative as demand collapses 2020-04 Saudi-Russia oil price war 2020-03 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Bitcoin Cash hash war capitulation 2018-11 China-led global 'Black Monday' rout 2015-08 OPEC abandons output defense, opting for market share vs US shale 2014-11 Gold futures velocity-logic flash crash 2014-01 Gold all-time peak of $1,921/oz 2011-09 Greek sovereign debt crisis / first EU-IMF bailout 2010-05 Oil collapses from $147 to the $30s as the GFC craters demand 2008-12 US airline stocks plunge ~40% on first trading day after 9/11 2001-09 Hong Kong defends the peg with sky-high HIBOR 1997-10 Tiananmen Square crackdown 1989-06 Chernobyl disaster 1986-04 1986 oil price collapse 1986-02 Reagan assassination attempt 1981-03 Silver Thursday 1980-03 Soviet invasion of Afghanistan 1979-12 Volcker 'Saturday Night Special' 1979-10 Three Mile Island partial meltdown 1979-03 1979 Iranian Revolution oil shock 1979-01 JFK assassination 1963-11
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
Volatility VIXLONG+4.6% · 5d +5.5%69%28 0.34✓ matches cascade
XCU XCUSHORT-2.2% · 5d -0.9%68%26 0.30✓ matches cascade
XLK XLKLONG+0.9% · 5d -0.4% ↺ fades66%26 0.25⚠ differs
MSTR MSTRLONG+4.2% · 5d -2.7% ↺ fades68%26 0.25⚠ differs
INTC INTCSHORT-2.4% · 5d -1.9%65%33 0.25✓ matches cascade
XLF XLFSHORT-0.9% · 5d -0.3%64%26 0.24✓ matches cascade
XPT XPTSHORT-1.9% · 5d -0.9%62%26 0.22✓ matches cascade
TRY TRYSHORT-0.8% · 5d +0.9% ↺ fades65%25 0.21✓ matches cascade
COIN COINLONG+7.8% · 5d +0.7%62%10 0.20⚠ differs
JPM JPMSHORT-1.8% · 5d -1.1%62%33 0.20✓ matches cascade
AMD AMDSHORT-1.1% · 5d -0.6%62%33 0.18✓ matches cascade
AVGO AVGOLONG+3.5% · 5d -0.8% ↺ fades60%24 0.17⚠ differs
ETH ETHSHORT-5.5% · 5d -6.5%61%16 0.16✓ matches cascade
CNY CNYSHORT-0.2% · 5d -0.1%57%26 0.14✓ matches cascade

Why this probability

Beyond-Carrington grid-killing event extremely rare; solar max waning by 2026; structural tail. A base‑rate‑anchored prior, continuously scored against what actually happens — not a forecast.

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.