Do you think recent AI selloff was mainly due to Citadel's hunt for Leopold's fund
u/AnthonyExplorer ·
Reddit — r/wallstreetbets
· August 01, 2026 at 13:52
· ⬆ 68 pts
· 💬 64 comments
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Summary
Post theorizes the recent AI selloff was engineered by Citadel to force a margin call on Leopold’s Situational Awareness fund, which was heavily concentrated in NBIS, SNDK, and MU.
Author claims Citadel spread FUD — including false Chinese memory concerns and a Fed rate-hike narrative — to crush prices, buy the fund at a discount, and then watch positions rebound ~30%.
Quality assessment: Speculation/conspiracy narrative, not well-researched DD; no verifiable evidence provided for coordinated manipulation.
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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 they 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?
Author claims NBIS was a top Leopold holding that fell 10-15% daily despite strong earnings/guidance, then rebounded after the fund sale. If the selloff was forced liquidation rather than a fundamental breakdown, NBIS may be oversold and could mean-revert. Not a high-conviction call; watch for confirmation of a bottom before entering long. Manipulation theory is unproven; overleveraged unwind could continue; community comments attribute the drop to real deleveraging.
SNDK was one of Leopold’s largest positions and was said to dump 10-15% at market open without bad news. A forced-selling shock could create temporary dislocation in memory stocks, especially once the forced seller is removed. Monitor for bounce and volume confirmation; author gives no direct buy signal. Memory sector may face real oversupply; Chinese memory FUD, though called false by author, could have some factual basis.
MU was part of Leopold’s concentrated AI/memory portfolio and would have been caught in the same selloff. If liquidation drove the pullback, an oversold bounce is possible once selling pressure exhausts. Same event-driven watch as NBIS/SNDK; author provides no MU-specific catalyst. Author mentions MU less directly; memory-cycle and macro/Fed risks remain real.
This Reddit post, published August 01, 2026,
features u/AnthonyExplorer
discussing NBIS, SNDK, MU.
3 trade ideas extracted by AI with direction and confidence scoring.