Status malfunction is when our desire for social status prevents us from living our best and most fulfilled lives, e.g. because we are risk-averse. Social status is something every person cares about - we are social creatures! It's good to understand the power of social status signals for us and how they're used to communicate something invisible about ourselves more visibly, e.g. wearing a Rolex on your wrist. We also have strong [[Loss aversion]] around our social status. This means that if taking a risk could threaten our social status (e.g. losing a high-paying job with a great title or dropping out of a top school) we will tend to avoid taking that risk. Ultimately people who are obsessed with status can't find fulfillment and happiness in their lives. There will always be someone at a higher status than you, another rung to climb. A good social circle that cares less about conventional social status is critical to avoiding Status malfunction - that way you can combat the idea that people will think you are lower status with a solid group of close friends and family.