Michael Burry explained why he sold GameStop on his Substack. Astrid Stawiarz/Getty Images

Michael Burry explained on his Substack why he sold out of GameStop this week.

The "Big Short" investor was hoping CEO Ryan Cohen would strike a less debt-heavy and dilutive deal.

Burry said Cohen's pay deal likely explains his $56 billion bid for eBay.

Michael Burry sold his entire stake in GameStop this week after CEO Ryan Cohen launched a takeover bid for eBay.

The investor of "The Big Short" fame , who counted GameStop among the three largest holdings in his stock portfolio, wrote on his Substack that he closed the bet because he'd been hoping for Cohen to strike a different kind of deal.

Burry — who's gone from neurology resident and blogger, to hedge fund manager, to online writer — said it was "remarkable how a scalpel can be used differently than a meat cleaver." He was likely comparing his proposed deal structure to the one Cohen is pursuing.

He wrote that his " Instant Berkshire " approach, inspired by…