The Real Reason Citadel Just Took Over a $45 Billion Fund
Get your free Portfolio Stress Test here: https://heresy.financial/stresstestLeopold Aschenbrenner turned $200 million into $45 billion betting on AI, then lost most of it in days, and Citadel ended up with his portfolio. Here's how the Situational Awareness blowup happened.
TIMECODES
0:00 The Violent Rise and Epic Blowup
0:38 Who Is Leopold Aschenbrenner?
2:34 The 20,000% Run
3:15 Liquor, Ladies, and Leverage
3:52 It Started in Korea
5:12 Sharks in the Water
5:55 The Final Cash Call
6:36 Still Up 5,000%
7:06 The Letter to Investors
8:37 What Citadel Actually Did
10:07 The Lesson
10:45 Is It Over for Your Stocks?
In this video: who Leopold Aschenbrenner is, from FTX's Future Fund and OpenAI to the Situational Awareness essay and the hedge fund of the same name and how a concentrated, 4x-leveraged long/short AI book (Bloom Energy, SanDisk, Nvidia, IREN - short Adobe) ran to a 20,000% return before the unwind. We trace how it started in Korea's KOSPI, spread through margin calls and exploding short interest, and ended in a forced liquidation and a block transaction that handed the portfolio to Citadel at fire-sale prices. Then we read the letter he sent investors, look at why some of these stocks rallied 30% in a single day once the leverage was gone, and what it all means for the AI stocks in your portfolio, including whether the sell off is actually over.
#AIStocks #HedgeFunds #Investing
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