Duan Yongping (段永平) accidentally positions himself as Pop Mart (泡泡玛特)’s potential third-largest shareholder

A costly slip that became a market booster

It has been reported that veteran investor Duan Yongping (段永平) inadvertently put himself on track to become Pop Mart (泡泡玛特)’s third-largest shareholder after selling 225,000 put options tied to the Hong Kong-listed toy and blind‑box company. Duan’s sell‑put strategy — a common “insurance” approach among value investors — would obligate him to buy about 45 million shares if exercised because Hong Kong Pop Mart options settle at 200 shares per contract, not the 100‑share standard common in many U.S. listings. If the puts are exercised at the reported HK$150 strike, Duan would need roughly HK$6.8 billion to take the stake, a holding reportedly large enough to lift him above most outside investors and only behind founder Wang Ning (王宁) and the management team.

A veteran value investor’s strategy gone awry

Duan, a well‑known disciple of Warren Buffett, has long used sell‑put trades to seek bargains in companies he admires. But it has been reported that he applied U.S. contract conventions out of habit and overlooked the Hong Kong unit size, a detail that Xueqiu (Snowball) users flagged publicly and that Duan later admitted he “didn’t notice.” The gaffe was no small matter: market participants took note that a prominent value investor had effectively posted a very large backstop at HK$150, squeezing short sellers and triggering a rush to cover. Pop Mart’s shares rose more than 10% over April 14–15 and the company’s market value jumped by roughly HK$17 billion in two sessions.

From skeptic to supporter — and why it matters

Just months earlier Duan had said he “didn’t understand” Pop Mart, likening craze‑driven toy trends to Tamagotchi or hula hoops and questioning long‑term demand. Reportedly, a blockbuster 2025 earnings report and subsequent deep dive into the business — artist signings, brand cachet, global store network and management — changed his view, prompting him to “open an insurance company” via sell puts rather than buy shares outright. The episode surfaces a broader puzzle: Pop Mart delivered its strongest 2025 results on record, yet the stock fell more than 30% in the three trading days after the report and remains roughly half its August peak of HK$339. What does it say when a value‑investing icon reverses course and then trips over market mechanics? Perhaps that traditional investors are beginning to take the “toy” business seriously — and that cross‑listing rules and market structure can move markets as much as fundamentals.