Jim Cramer says this hedge fund's blowup reveals the hidden risks of leverage

Why Situational Awareness hedge fund imploded, even in a tame stock market

Situational Awareness ($45B) collapsed as AI infrastructure longs (chips, datacenters, power) fell 50–78% while software hedges rallied, forcing losses and margin call liquidations. Over-leverage in concentrated AI infrastructure plays devastates even when broad markets stay calm; momentum crash signals leverage-driven demand fragility and valuation risk.