--- title: "Jim Cramer Calls Hedge Fund Blowup a 'Clearing Event' that May Mark the Bottom" type: "News" locale: "en" url: "https://longbridge.com/en/news/294406312.md" description: "Jim Cramer and strategist Dan Niles suggest the liquidation of AI-focused hedge fund Situational Awareness may mark a bottom in AI stocks. Cramer views the forced selling as a 'clearing event' that removes leveraged sellers, potentially signaling bullishness. This aligns with recent market rebounds in AI infrastructure names like Bloom Energy and Micron, as opposed-direction bets reverse following the deleveraging process." datetime: "2026-07-30T19:19:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294406312.md) - [en](https://longbridge.com/en/news/294406312.md) - [zh-HK](https://longbridge.com/zh-HK/news/294406312.md) --- # Jim Cramer Calls Hedge Fund Blowup a 'Clearing Event' that May Mark the Bottom **Jim Cramer** said Thursday that the liquidation of **Situational Awareness**, the roughly $20 billion AI-focused fund founded by **Leopold Aschenbrenner,** could be read as bullish rather than bearish. “I have always believed that when you clear out the people who have to sell, like this gentleman, you get a bottom,” Cramer said on CNBC’s “Squawk on the Street.”  Cramer went further, arguing Situational Awareness is unlikely to be an isolated case: “This is a clearing event… because he’s not the only one. There are so many people margined in these same stocks,” he said.   - _BE stock is soaring. See the chart and price action here._ ## Why Cramer Is Talking About This Fund Situational Awareness built its portfolio around long positions in AI infrastructure names such as **Bloom Energy** (NYSE:BE),  **Micron Technology** (NASDAQ:MU) and **CoreWeave** (NASDAQ:CRWV), paired against shorts in software stocks.  The fund used leverage that amplified its losses during the recent AI-sector pullback, ultimately selling its entire public equities book and turning to investors and lenders for fresh cash — including offers to sell assets directly — while keeping private holdings such as its Anthropic stake.  That backdrop is what makes Cramer’s framing notable: he’s pointing to a specific, high-profile forced seller as the type of capitulation that historically precedes a floor, rather than a signal of further downside for AI stocks. **Read Also: SanDisk Leads Memory Stock Rally — Here's What's Fueling the Bounce Back** ## Opposite-Direction Bets Reversing The fund’s paired trade had been working against it heading into Thursday — its AI infrastructure longs, including Micron, had pulled back sharply from June highs, while shorted software names such as **Adobe** (NASDAQ:ADBE) had rallied.  Both the AI and software trades were reversing Thursday as the fund’s book changed hands — the kind of snapback Cramer’s “clearing event” thesis would predict once a forced seller is done selling. ## Niles Made a Similar Call Hours Earlier Cramer wasn’t alone in that view Thursday. Market strategist **Dan Niles** said forced liquidations and margin calls across retail and hedge fund accounts had produced a “short-term bottom” in AI-adjacent stocks, calling it a “cleansing process” that prime brokers are managing carefully to avoid a repeat of the Archegos Capital blowup. Niles framed a recent memory-chip earnings miss and capex cuts as a “speedbump,” not the top of the AI cycle, and said he expects a “strong rally” once the deleveraging clears. **Read Also: SpaceX Stock Now Has $26 Billion in Short Bets — 35% of its Entire Float** _Photo: Shutterstock_ ### Related Stocks - [BE.US](https://longbridge.com/en/quote/BE.US.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [MUU.US](https://longbridge.com/en/quote/MUU.US.md) - [MULL.US](https://longbridge.com/en/quote/MULL.US.md) - [BEX.US](https://longbridge.com/en/quote/BEX.US.md) - [BEZ.US](https://longbridge.com/en/quote/BEZ.US.md) - [MUD.US](https://longbridge.com/en/quote/MUD.US.md) - [MUYY.US](https://longbridge.com/en/quote/MUYY.US.md) - [MUZ.US](https://longbridge.com/en/quote/MUZ.US.md) - [CRWV.US](https://longbridge.com/en/quote/CRWV.US.md) - [SNDK.US](https://longbridge.com/en/quote/SNDK.US.md) - [ADBE.US](https://longbridge.com/en/quote/ADBE.US.md) ## Related News & Research - [Brutal Math of Leveraged AI Bets: Why Martin Shkreli Says Wall Street Will 'Send Micron to $5'](https://longbridge.com/en/news/294503299.md) - [What's Wrong With Micron Technology Stock?](https://longbridge.com/en/news/294710998.md) - [Glenmede Trust Co. NA Decreases Stake in Micron Technology, Inc. $MU](https://longbridge.com/en/news/294603236.md) - [GKV Capital Management Co. Inc. Boosts Holdings in Micron Technology, Inc. $MU](https://longbridge.com/en/news/294577510.md) - [Micron Investors Get Another Reason to Be Nervous](https://longbridge.com/en/news/294237789.md)