Leopold Aschenbrenner, the founder of hedge fund Situational Awareness, has seen his leveraged positions liquidated following a swift downturn in AI stocks.

Aschenbrenner, a former member of Sam Bankman-Fried’s FTX Future Fund team, launched his fund in 2024 and ran it up 1,000% by May this year.

However, CNBC reported Thursday that Situational Awareness had suffered “heavy losses,” needed cash for margin calls, and was consulting with investment bankers for the possibility of an orderly wind-down.

By midday, the Wall Street Journal reported that Ken Griffin’s Citadel had bought “the bulk of its stock portfolio.”

The fund was allegedly up 439% net of fees from January 1, 2026 through June 30 per a July 24 investor letter the FT cited. Then July happened.

...read more at protos.com