The hype surrounding modern markets mirrors the crowd psychology described in Charles Mackay’s 1841 classic. Traders still cite tulip mania and the South Sea bubble as shorthand for irrational spikes, but Mackay also warned of an “epidemic terror of the end of the world” that now resurfaces in corporate rhetoric. Boardrooms now cite existential risk to justify buybacks.

Chinese EV leader BYD illustrates the shift. Once praised for rapid battery advances, the firm now wrestles with software integration, a domain where rivals outpace hardware‑first approaches. Analysts note that without robust OTA updates and data platforms, BYD’s models lose appeal faster, forcing the company to reallocate R&D spend toward firmware rather than chassis innovation. The shift pressures supply chains; component suppliers add firmware testing to quality checks.

Investors interpreting these signals risk amplifying the very mania they fear. When earnings reports spotlight software lag, short sellers flood positions, driving prices down and prompting panic buying from contrarian funds. The cycle reinforces Mackay’s warning: a self‑fulfilling narrative can turn ordinary market corrections into apocalyptic rhetoric, eroding confidence across sectors, and regulators now demand risk metrics tied to software performance.