Investor Ross Gerber said Tuesday that the July technology selloff appears to have been driven more by the forced unwinding of former OpenAI researcher Leopold Aschenbrenner's AI-focused hedge fund Situational Awareness than deteriorating fundamentals.
Experience Matters, Gerber Says Gerber Kawasaki CEO said in a post on X that the collapse of Situational Awareness offered a broader lesson for investors, with experience proving invaluable when leverage magnifies market swings.
"Feels like the whole July tech correction was just to take Leo's money," Gerber said.
"Citadel now up well over a billion in a week taking this kid's money… there is a lesson here to learn… experience matters." Feels like the whole July tech correction was just to take Leo’s money.
Citadel now up well over a billion in a week taking this kids money… there is a lesson here to learn… experience matters.— Ross Gerber (@GerberKawasaki) August 4, 2026 The investor had earlier criticized Situational Awareness' use of leverage, warning that excessive borrowing could quickly erase years of gains while creating buying opportunities for long-term investors.
