Timeline Revealed: Leopold's AI Hedge Fund Blowup and Leverage Failure
GaryMarcus · x · 2026-07-31
Gary Marcus shared a detailed financial timeline exposing the recent blowup of the 'Situational Awareness' hedge fund, founded by former OpenAI exec Leopold Aschenbrennen.
The fund was up 450% YTD by July 1 driven by AI assets but suffered massive losses starting mid-July due to a broader AI sector selloff and failing short positions in software stocks. Facing margin calls, his heavy use of leverage led to a disastrous blowup, highlighting the extreme risks of leverage in the stock market.
Related event: Ex-OpenAI Staffer's AI Hedge Fund Blows Up, Citadel Takes Over $16B(41 posts)→
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