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I'm not aware of any scientific basis for the butterfly effect being referred to as the direct cause of hurricanes.

Me neither, I was just kidding.

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Butterfly effect is more for social and psychological events not physical ones. Laws of thermodynamics prevents it.

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I think it's not that thermodynamics laws prevent it, but that it's not applicable to many systems that we work with. This explanation from the guy who developed the concept could help: some complex dynamical systems exhibit unpredictable behaviors such that small variances in the initial conditions could have profound and widely divergent effects on the system’s outcomes.