Citadel's Short Squeeze: Leopold Aschenbrenner Forced to Sell AI Infrastructure Assets

dbasch · x · 2026-08-05

A viral post details the behind-the-scenes game that caused Leopold Aschenbrenner’s forced sale. A young man in his early twenties grew a fund from $225 million to over $40 billion in just 2 years with only 8 employees. Citadel spotted a weakness in the portfolio—leverage—and launched an attack, though they agreed with the underlying thesis: AI infrastructure is where the real money is. Commenters compared this capital drama to the classic film The Color of Money.

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