Shares of cloud security and performance company Cloudflare (NYSE:NET) fell 11.6% in the morning session after reports of a ceasefire breach in the Middle East spiked market volatility as fears grew that a fragile U.S.-Iran truce would unravel.

This tension was compounded by Anthropic’s launch of Managed Agents, autonomous AI systems that execute complex tasks. Traders were worried these would disrupt the traditional SaaS (Software as a Service) model, by replacing human-operated tools with more efficient AI workers.

The sell-off intensified after short seller Michael Burry claimed (in a deleted social media post) Anthropic was “eating Palantir’s lunch.” Burry’s comments highlighted the vulnerability of legacy…