After genetically engineered Bt cotton lost its effectiveness in central and southern Indian states, pink bollworm infestations have recently returned to farmers’ fields and have substantially shifted their vulnerability context. We conceive Bt cotton as a neoliberal technology that is built to protect farmers only temporarily from Lepidopteran pests while ultimately driving the further concentration of capital. Based on data from a representative survey of the three major cotton-producing districts of the state of Telangana (n = 457), we find that pink bollworm pest infestations are a shock to farmers that lead to severe losses in yield and income. Using the vulnerability concept as a framework, we embed our findings in a political-economic context by drawing on Harvey’s notion of accumulation by dispossession. We argue that Bt cotton includes an inherent sociobiological obsolescence that results in a systematic dispossession of resource-poor households while providing appropriation opportunities for other actors. Finally, reproduced hegemonic structures facilitate the accumulation of capital through a redistribution of assets from the bottom to the top of the agricultural sector. Claims that considered Bt cotton as a pro-poor technology were thus flawed from the outset.