Situational Awareness just sold its entire public equity book. CNBC’s David Faber reports that Leopold Aschenbrenner’s $20-24B AI hedge fund liquidated all public long and short positions to a single buyer. The fund was up ~439% net through June after riding leveraged AI infrastructure bets (Bloom Energy, data centers, memory, etc.). July’s tech rout hit hard. With reported leverage as high as 4x, prime brokers (Goldman, BofA, JPM) got involved. Margin pressure + forced selling. Aschenbrenner’s July 24 letter still called the dip “one of the best buying opportunities since early 2025” and invited new capital from August 1. They’re also marketing private stakes (including Anthropic).Classic leverage story: spectacular upside on the way up, brutal on the way down. The public book is gone. The private book and the capital raise remain.