Situational Awareness, Leopold Aschenbrenner’s hedge fund, just took a brutal 67% hit in July—blamed squarely on AI stock collapses—with the firm even admitting to investors they “let you down this month.” Cash is bleeding fast, and Citadel swooped in to buy up the portfolio, turning a disaster into a strategic play. It’s a stark reminder: even Wall Street’s sharpest players can get burned in the wild, volatile world of AI investing.
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