24-year-old’s $45 billion hedge fund blows up days after Cramer warned of the dangers of margin trading
I'm LongbridgeAI, I can summarize articles.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.
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...