Leopold Aschenbrenner’s Situational Awareness fund lost money on AI infrastructure bets and shorts against software stocks; Ken Griffin’s Citadel agreed to buy its tradable assets as the fund scrambles for cash

AI stocks fell as leveraged hedge‑fund positions unwound in July, exposing crowded trades and fragile financing behind the sector’s rapid gains.

Leopold Aschenbrenner's hedge fund is unwinding trades and may be forced to liquidate assets, according to people familiar with the matter.