⚔ Geopolitics risk-off · 1–3 years
A what‑if from the future

What if PLA seizes Taiwan-held Itu Aba in the Spratlys?

China takes Taiwan's largest occupied Spratly feature, a multi-front escalation linking Strait and SCS theaters; TWD, PHP and VND weaken, oil-route and chip risk rise, gold and VIX bid.

8%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 8% · 90% range 0–18% · 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 13% of the class6%
Pooled · weight 87%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 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. China takes Taiwan's largest occupied Spratly feature, a multi-front escalation linking Strait and SCS theaters; TWD, PHP and VND weaken, oil-route and chip risk rise, gold and VIX bid. The trigger decomposes into signed root‑shocks — Volatility (VIX) ▲ · Geopolitical risk ▲ · Oil supply risk ▲ · Risk appetite ▼ · Semiconductor supply risk ▲ — 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▲ +9.7%
hist +2.4–+6.4% · other way -1.95% (n=12)
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -4.2%
hist -2.06–-0.93% · other way -0.12% (n=12)
3Tech sector XLK 📈 chartEquity▼ -2.7%
hist -1.69–-0.86% · other way +0.3% (n=12)
4Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -2.2%
hist -1.37–-0.78% · other way +0.99% (n=12)
5S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -2.2%
hist -2.13–-0.46% · other way +1.39% (n=12)
6TSMC TSMon Hyperliquid 📈 chartEquity▼ -2.1%
hist -2.96–+0.03% · other way +1.17% (n=12)
7MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -2.3%
hist -2.22–+0.99% · other way +7.5% (n=12)
8Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -2.0%
hist -2.35–-0.16% · other way +3.31% (n=12)
9Solana SOLon Hyperliquid 📈 chartCrypto▼ -1.7%
hist -2.13–-0.1% · other way -17.09% (n=11)
10Brent crude BRENTon Hyperliquid 📈 chartCommodity▲ +1.8%
hist +0.13–+1.12% · other way +0.54% (n=12)
11ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.5%
hist -2.88–+0.4% · other way -1.38% (n=12)
12Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -1.4%
model prior · unmeasured
13WTI crude CLon Hyperliquid 📈 chartCommodity▲ +1.4%
hist -1.33–+1.03% · other way +1.39% (n=12)
14AMD AMDon Hyperliquid 📈 chartEquity▼ -1.5%
hist -1.01–-0.4% · other way -2.76% (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 gold hedge.
Also moves (not yet on Hyperliquid): Tech sector -2.7% · High-yield credit -1.0% · Financials -0.7% · United Airlines -0.9% · ExxonMobil +0.8% · Chevron +0.7%

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.

Israel strikes Iran — Operation Rising Lion 2025-06 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Saudi-Russia oil price war 2020-03 North Korea 'fire and fury' nuclear scare 2017-08 OPEC abandons output defense, opting for market share vs US shale 2014-11 Egyptian revolution / Mubarak uprising 2011-01 1986 oil price collapse 1986-02 Iran hostage crisis / US freezes Iranian assets 1979-11 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 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 Hezbollah pager and device explosions across Lebanon 2024-09 VIX third-highest spike on record 2024-08 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 April 2024 Iranian drone-and-missile barrage on Israel 2024-04 Ukrainian drone strikes hit Russian refineries, lifting crude and gasoline 2024-03 Niger coup d'etat 2023-07 Wagner Group mutiny against the Kremlin 2023-06 ExxonMobil posts most profitable year for any US oil company 2023-01 Netflix subscriber-loss crash 2022-04 US-led 240-million-barrel SPR release answers the Ukraine spike 2022-03 Houthi drone-and-missile strike on Aramco's Jeddah depot 2022-03 Meta 2022-02 Houthi drone-and-missile attack on Abu Dhabi oil sites lifts Brent to 7-year high 2022-01 Evergrande debt crisis - global selloff 2021-09 Didi removed from China app stores after NYSE IPO 2021-07 Ever Given Suez Canal blockage 2021-03 COVID-19 fourth circuit breaker 2020-03 Abqaiq-Khurais strike triggers the biggest Brent spike on record 2019-09 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Huawei added to Entity List + ICT executive order 2019-05 Houthi drones strike Saudi East-West crude pipeline 2019-05 Worst Christmas Eve selloff on record 2018-12 Nvidia crypto-glut guidance crash 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
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
NDX NDXSHORT-0.3% · 5d -0.9%70%39 0.29✓ matches cascade
LMT LMTLONG+3.4% · 5d +0.3%66%40 0.26✓ matches cascade
CL CLSHORT-1.8% · 5d -1.2%63%38 0.22⚠ differs
NOC NOCLONG+2.7% · 5d +0.1%64%39 0.22✓ matches cascade
ETH ETHSHORT-4.3% · 5d -3.9%64%33 0.21✓ matches cascade
QCOM QCOMSHORT-3.7% · 5d -3.3%63%38 0.19✓ matches cascade
AUD AUDSHORT-0.7% · 5d -0.6%61%38 0.19✓ matches cascade
Volatility VIXLONG+1.4% · 5d +4.0%60%38 0.18✓ matches cascade
MU MUSHORT-1.0% · 5d -2.8%62%39 0.18✓ matches cascade
USDJPY USDJPYLONG+0.7% · 5d +0.2%60%38 0.18⚠ differs
NVDA NVDASHORT-1.2% · 5d -3.7%61%38 0.17✓ matches cascade
10y yield DGS10LONG+1bp · 5d +6bp60%40 0.16✓ matches cascade
Gold XAULONG+0.9% · 5d -0.7% ↺ fades59%38 0.15✓ matches cascade
INR INRSHORT-0.4% · 5d +0.2% ↺ fades59%38 0.14✓ 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.