⚔ Geopolitics risk-off · 0–6 months
A what‑if from the future

What if PLA fighter weapons-locks a US recon plane over the SCS?

A radar weapons-lock during a close intercept escalates a US-China aerial incident; a brief risk-off wave hits Asian equities and EM FX, lifting VIX, gold and the dollar.

8%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 8% · 90% range 0–17% · 38 analogues · measured class vol_spike 31% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — vol_spike ≈0.7371/yr → 31% in 6 mo31%
Analyst prior · editorial share 26% of the class8%
Pooled · weight 86%8%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)8%
Published8%

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 0–6 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 radar weapons-lock during a close intercept escalates a US-China aerial incident; a brief risk-off wave hits Asian equities and EM FX, lifting VIX, gold and the dollar. The trigger decomposes into signed root‑shocks — Volatility (VIX) ▲ · Dollar/reserve confidence ▲ · Geopolitical risk ▲ · 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
1Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +7.6%
hist +1.85–+5.19% · other way +3.23% (n=12)
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -2.8%
hist -1.81–-0.91% · other way -0.37% (n=12)
3MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -2.9%
hist -2.79–+1.83% · other way +26.92% (n=12)
4Solana SOLon Hyperliquid 📈 chartCrypto▼ -1.8%
hist -4.46–+2.5% · other way +0.89% (n=12)
5Tech sector XLK 📈 chartEquity▼ -1.9%
hist -1.39–-0.26% · other way -0.34% (n=12)
6Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -1.7%
hist -1.97–-0.23% · other way +5.17% (n=12)
7S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -1.5%
hist -1.18–-0.43% · other way +0.57% (n=12)
8Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -1.3%
model prior · unmeasured
9Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -1.4%
hist -0.88–+0.39% · other way +2.23% (n=12)
10Ether ETHon Hyperliquid 📈 chartCrypto▼ -1.2%
hist -7.71–+3.15% · other way +5.13% (n=12)
11Coinbase COINon Hyperliquid 📈 chartEquity▼ -1.1%
hist -9.49–+14.81% · other way +21.23% (n=12)
12Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -1.1%
hist -0.73–-0.29% · other way +4.75% (n=12)
13US dollar (DXY) DXYon Hyperliquid 📈 chartFX▲ +0.8%
hist +0.22–+0.52% · other way +0.41% (n=12)
14High-yield credit HYG 📈 chartRate▼ -0.8%
hist -0.63–-0.21% · other way -0.32% (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 -1.9% · High-yield credit -0.8% · Financials -0.6% · Turkish lira -0.6% · Aussie dollar -0.5% · Lockheed +0.5%

Historical precedent — what analogous events actually did

Across 38 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.

Israel strikes Iran — Operation Rising Lion 2025-06 North Korea 'fire and fury' nuclear scare 2017-08 Egyptian revolution / Mubarak uprising 2011-01 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 October 2024 Iranian ballistic-missile attack on Israel 2024-10 VIX third-highest spike on record 2024-08 Niger coup d'etat 2023-07 Wagner Group mutiny against the Kremlin 2023-06 Evergrande debt crisis - global selloff 2021-09 COVID-19 fourth circuit breaker 2020-03 Saudi-Russia oil price war 2020-03 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Worst Christmas Eve selloff on record 2018-12 Bitcoin Cash hash war capitulation 2018-11 February 2018 hot wage print triggers rate scare 2018-02 North Korea sixth nuclear test 2017-09 China-led global 'Black Monday' rout 2015-08 OPEC abandons output defense, opting for market share vs US shale 2014-11 Thailand 2014 military coup 2014-05 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 VIX record intraday high of 89.53 2008-10 Shanghai Sneeze global selloff with then-record VIX spike 2007-02 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 Soviet August coup attempt against Gorbachev 1991-08 Tiananmen Square crackdown 1989-06 Louvre Accord 1987-02 1986 oil price collapse 1986-02 Reagan assassination attempt 1981-03 Gold peaks at $850 1980-01 Iran hostage crisis / US freezes Iranian assets 1979-11 Iranian Revolution oil shock 1978-12 JFK assassination 1963-11 Cuban Missile Crisis 1962-10 Korean War begins 1950-06 Smoot-Hawley clears the US House 1929-05
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
COIN COINLONG+15.8% · 5d +4.1%76%8 0.48⚠ differs
INR INRSHORT-0.4% · 5d +0.1% ↺ fades65%24 0.26✓ matches cascade
RTX RTXSHORT-1.5% · 5d -1.1%65%34 0.26⚠ differs
AVGO AVGOLONG+3.7% · 5d +0.0%64%22 0.25⚠ differs
ETH ETHSHORT-6.9% · 5d -7.1%66%14 0.24✓ matches cascade
NOC NOCLONG+1.1% · 5d +0.0%62%30 0.21✓ matches cascade
AMD AMDSHORT-1.0% · 5d -0.2%63%31 0.19✓ matches cascade
MU MUSHORT-4.1% · 5d -0.9%62%30 0.19✓ matches cascade
TRY TRYSHORT-0.5% · 5d +1.4% ↺ fades63%24 0.19✓ matches cascade
Gold XAULONG+1.6% · 5d -0.1% ↺ fades60%25 0.18·
SMH SMHLONG+0.9% · 5d +0.2%60%25 0.16⚠ differs
QCOM QCOMSHORT-1.8% · 5d -0.8%62%26 0.16✓ matches cascade
INTC INTCSHORT-0.8% · 5d -0.9%58%31 0.14✓ matches cascade
10y yield DGS10LONG+1bp · 5d +3bp56%34 0.11⚠ 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.