---
title: "24-year-old’s $45 billion hedge fund blows up days after Cramer warned of the dangers of margin trading"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294503715.md"
description: "Situational Awareness LP, a $45 billion AI hedge fund run by Leopold Aschenbrenner, collapsed on July 30, 2026, after margin calls from Goldman Sachs, JPMorgan, and Bank of America forced the liquidation of its $10+ billion public equity book to Citadel. The blowup resulted from a 4x leveraged long-short strategy failing as AI infrastructure stocks fell and software shorts rallied, validating Jim Cramer's recent warnings against margin trading in data center trades."
datetime: "2026-07-31T11:10:41.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294503715.md)
  - [en](https://longbridge.com/en/news/294503715.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294503715.md)
generator: "portal-rs"
---

# 24-year-old’s $45 billion hedge fund blows up days after Cramer warned of the dangers of margin trading

Quick ReadMRVL dropped 40% and ADBE surged 27% simultaneously, turning the fund's 4x-leveraged long-short strategy into a total wipeout in under six weeks.Cramer warned investors to exit margin-financed data center trades two days before Goldman, JPMorgan, and Bank of America forced Aschenbrenner's liquidation.Are you ahead, or behind on retirement...

### Related Stocks

- [GS.US](https://longbridge.com/en/quote/GS.US.md)
- [GS-C.US](https://longbridge.com/en/quote/GS-C.US.md)
- [GS-A.US](https://longbridge.com/en/quote/GS-A.US.md)
- [GS-D.US](https://longbridge.com/en/quote/GS-D.US.md)
- [JPM.US](https://longbridge.com/en/quote/JPM.US.md)
- [BAC.US](https://longbridge.com/en/quote/BAC.US.md)
- [JPX.US](https://longbridge.com/en/quote/JPX.US.md)
- [JPMO.US](https://longbridge.com/en/quote/JPMO.US.md)
- [MRVL.US](https://longbridge.com/en/quote/MRVL.US.md)
- [ADBE.US](https://longbridge.com/en/quote/ADBE.US.md)
- [W4VR.SG](https://longbridge.com/en/quote/W4VR.SG.md)
- [JPM-M.US](https://longbridge.com/en/quote/JPM-M.US.md)
- [JPM-C.US](https://longbridge.com/en/quote/JPM-C.US.md)
- [JPM-D.US](https://longbridge.com/en/quote/JPM-D.US.md)
- [JPM-L.US](https://longbridge.com/en/quote/JPM-L.US.md)
- [8634.JP](https://longbridge.com/en/quote/8634.JP.md)
- [JPM-K.US](https://longbridge.com/en/quote/JPM-K.US.md)
- [JPM-J.US](https://longbridge.com/en/quote/JPM-J.US.md)
- [BAC-Q.US](https://longbridge.com/en/quote/BAC-Q.US.md)
- [BML-L.US](https://longbridge.com/en/quote/BML-L.US.md)
- [BAC-L.US](https://longbridge.com/en/quote/BAC-L.US.md)
- [BAC-K.US](https://longbridge.com/en/quote/BAC-K.US.md)
- [BML-H.US](https://longbridge.com/en/quote/BML-H.US.md)
- [BAC-N.US](https://longbridge.com/en/quote/BAC-N.US.md)
- [BAC-E.US](https://longbridge.com/en/quote/BAC-E.US.md)
- [MER-K.US](https://longbridge.com/en/quote/MER-K.US.md)
- [BAC-O.US](https://longbridge.com/en/quote/BAC-O.US.md)
- [BML-G.US](https://longbridge.com/en/quote/BML-G.US.md)
- [BAC-M.US](https://longbridge.com/en/quote/BAC-M.US.md)
- [BAC-B.US](https://longbridge.com/en/quote/BAC-B.US.md)
- [BML-J.US](https://longbridge.com/en/quote/BML-J.US.md)
- [BAC-S.US](https://longbridge.com/en/quote/BAC-S.US.md)
- [BAC-P.US](https://longbridge.com/en/quote/BAC-P.US.md)
- [8648.JP](https://longbridge.com/en/quote/8648.JP.md)

## Related News & Research

- [Regulator sends subpoenas to banks for details on Situational Awareness trades - report](https://longbridge.com/en/news/296828497.md)
- [Goldman Sachs lifts Nagarro voting rights to 5.43% from 4.5%](https://longbridge.com/en/news/296811869.md)
- [Goldman Sachs raises SBO voting rights stake to 4.62% from 4.2%](https://longbridge.com/en/news/296811905.md)
- [Goldman Sachs Group holds 5.49% stake in Alstom](https://longbridge.com/en/news/296925016.md)
- [JPMorgan drops below 5% voting rights stake in Exail Technologies](https://longbridge.com/en/news/296903675.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**