It's even worse than that, as Palantir is a Party business. Betting against that is like betting whether specific people were going to be airbrushed out of photos in Stalin's Russia. And if you have that kind of insider insight, why short instead of making a positive bet on whomever the new Party darlings are going to be?

Maybe it makes sense based on the dynamic of the Party needing to run through scapegoats? One could possibly see that Palantir is about to be thrown under the bus, but only connected insiders will know who its exact replacement will be? Personally I don't see signs of Palantir being close to the chopping block though.