Do you think recent AI selloff was mainly due to Citadel's hunt for Situational Awareness fund
u/AnthonyExplorer ·
Reddit — r/stocks
· August 01, 2026 at 13:43
· ⬆ 38 pts
· 💬 54 comments
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As you all have probably already heard Citadel has acquired Leopold's Situational Awareness fund in what, alot of people would agree, was one of the biggest fund heist in this century so far.
Leopold' fund grew almsot 450% YTD with his aggressive AI investments, reaching over 45B at it's peak. Stocks like NBIS, SNDK and MU were more than 2/3 of his portfolio.
He obviously never learned risk management so he got overleveraged and Citadel knew that. Even a slight pullback in AI would seriously wound his portfolio. And then it started... The dumps were aggressive everyday, like really really aggressive. Coincidentally, his biggest positions like NBIS and SNDK would regularly dump 10%-15% at market open, day by day without any bad news. Actually on the contrary, the news for the stocks themselves were good. All earnings and guidances were exceptional. Then the FUD, such as Chinese memory started to come out, which are all now proved false.
But the biggest FUD of all? FED rates. Citadel were THE only ones who said that thay believed that the FED would raise rates, and that put the final nail in the coffin for him
During Monday and Tuesday, his biggest positions dumped more than 30%. He got margin called by the big boys and who was waiting to buy him out at a fraction of a dollar? The same Citadel that said the FED was going to raise rates. The only one who said that and started spreading fear.
The next day, after he got bought, his biggest positions skyrocketed 30%...
Coincidence?
What do you think?