Spyke

Replies

Comment on

SEC reportedly subpoenas Wall Street banks over "AI" hedge fund Situational Awareness’s near collapse

Aschenbrenner overleveraged the fund 4:1 and it had no diversity from AI stocks. The problem is their blocks of holdings were so large they could not sell them to meet the margin calls. You can't just sell $16B in stock unless you dump it cheap.

Looks an awful lot like Citadel's Ken Griffin set all this up to fail as he bought these stocks at a heavy discount.

Anyone stupid enough to invest in a non diversified hedge fund run by a 24 year old does not deserve to keep their money.