🌍 Society & Frontier risk-off · 1–3 years
A what‑if from the future

What if a mega-earthquake strikes Tokyo or California?

A Tokyo/California mega-quake is a semi supply-chain plus insurance shock: TSMC and fabless names (Nvidia) gap on single-point-of-failure fab risk, reinsurers absorb the catastrophe loss, and the yen can paradoxically strengthen on repatriation. Cleanest supply-shock analogue is the 2011 Tohoku quake, which disrupted auto and chip supply chains for months. Forward angle: unlike a demand-driven chip selloff (DeepSeek), this is a supply break — fab downtime tightens leading-edge capacity, so memory/foundry pricing could rise even as equities fall.

12%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 12% · 90% range 0–24% · 40 analogues · measured class supply_chain 46% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — supply_chain ≈0.2052/yr → 46% in 3 yr46%
Analyst prior · editorial share 22% of the class10%
Pooled · weight 87%12%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)12%
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 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. A mega-earthquake hits Tokyo or California, causing an insurance + supply shock. The trigger decomposes into signed root‑shocks — Risk appetite ▼ · Semiconductor supply risk ▲ · FX carry 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
1TSMC TSMon Hyperliquid 📈 chartEquity▼ -0.8%
hist -1.38–+0.08% · other way +0.88% (n=12)
2Solana SOLon Hyperliquid 📈 chartCrypto▼ -0.8%
hist -10.69–+0.4% · other way -18.33% (n=9)
3MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -0.9%
hist -5.38–+1.44% · other way +9.99% (n=12)
4Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -0.7%
hist -0.63–-0.12% · other way +3.24% (n=12)
5Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -0.7%
hist -0.42–-0.24% · other way +0.1% (n=12)
6Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -0.7%
model prior · unmeasured
7Ether ETHon Hyperliquid 📈 chartCrypto▼ -0.6%
hist -12.05–+1.71% · other way +0.03% (n=10)
8Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -0.6%
hist -0.56–+0.26% · other way +1.52% (n=12)
9ASML ASMLon Hyperliquid 📈 chartEquity▼ -0.5%
hist -2.36–+0.84% · other way -1.09% (n=12)
10Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -0.5%
hist -6.83–+1.46% · other way +4.6% (n=11)
11Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.5%
hist -0.99–+3.31% · other way -7.49% (n=12)
12S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -0.4%
hist -0.86–+0.17% · other way +1.57% (n=12)
13AMD AMDon Hyperliquid 📈 chartEquity▼ -0.4%
hist -0.38–+0.14% · other way -2.48% (n=12)
14Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -0.4%
hist -1.06–+2.01% · other way +2.35% (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 -0.4% · Aussie dollar -0.2% · Turkish lira -0.2% · High-yield credit -0.2% · Indian rupee -0.2%

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.

TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 ASML bookings-miss crash 2024-10 Nikkei 225 worst single-day crash since 1987 2024-08 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 Mexico's Sheinbaum landslide + supermajority scare 2024-06 Wagner Group mutiny against the Kremlin 2023-06 Turkish lira hits record low after Erdogan re-election 2023-05 Netflix subscriber-loss crash 2022-04 Meta 2022-02 Turkish lira record low on rate cuts 2021-11 Didi removed from China app stores after NYSE IPO 2021-07 Turkey fires central-bank governor Agbal, sparking lira plunge 2021-03 Nvidia crypto-glut guidance crash 2018-11 Turkish lira crash 2018-08 Pravin Gordhan fired in midnight cabinet reshuffle 2017-03 Mexican peso crash on Trump 2016 win 2016-11 August 24, 2015 ETF flash crash 2015-08 Russian ruble 'Black Tuesday' 2014-12 Russia annexation crisis: Moscow market plunge 2014-03 SNB imposes EUR/CHF 1.20 floor 2011-09 Turkey lets the lira float 2001-02 Russia GKO default and ruble moratorium 1998-08 Hong Kong defends the peg with sky-high HIBOR 1997-10 Philippines peso float 1997-07 Thai baht float 1997-07 Mexico $50bn international rescue package 1995-01 Mexican peso devaluation / Tequila Crisis 1994-12 Louvre Accord 1987-02 Japanese yen revisits 160/$ as intervention warnings return 2026-04 US intervention removes Maduro in Venezuela 2026-01 Korean won weakens past 1,480 as outflows persist 2025-12 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 Turkish lira plunges on arrest of Istanbul mayor Imamoglu 2025-03 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Tesla shares crater on DOGE political backlash and Europe sales collapse 2025-03 South Korea martial law crisis 2024-12
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
SOL SOLSHORT-8.1% · 5d -7.0%82%24 0.48✓ matches cascade
ETH ETHSHORT-9.8% · 5d -6.0%74%26 0.36✓ matches cascade
Bitcoin BTCSHORT-5.8% · 5d -3.7%68%30 0.27✓ matches cascade
COIN COINSHORT-0.1% · 5d +0.6% ↺ fades64%23 0.25✓ matches cascade
MU MUSHORT-0.4% · 5d -2.6%63%40 0.24✓ matches cascade
MSTR MSTRSHORT-4.5% · 5d -3.1%60%34 0.18✓ matches cascade
TRY TRYSHORT-4.2% · 5d -0.1%59%32 0.18✓ matches cascade
Volatility VIXLONG+2.9% · 5d +0.7%59%39 0.15✓ matches cascade
QCOM QCOMSHORT-3.1% · 5d -3.0%59%39 0.14✓ matches cascade
TSM TSMSHORT-0.9% · 5d -2.5%58%35 0.13✓ matches cascade
AUD AUDSHORT-0.4% · 5d -0.7%57%32 0.13✓ matches cascade
NVDA NVDASHORT-0.2% · 5d -3.6%59%33 0.12✓ matches cascade
AVGO AVGOLONG+2.1% · 5d -1.8% ↺ fades56%32 0.11⚠ differs
USDJPY USDJPYSHORT-0.1% · 5d -0.2%56%37 0.11✓ matches cascade

Why this probability

Mega-quake base rate roughly 1-3yr for either fault; insurance shock plausible but irregular. 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.