Citadel Buys Situational Awareness Portfolio After 67% AI-Driven Wipeout

Situational Awareness, a ~$16 billion hedge fund run by Leopold Aschenbrenner, lost 67% in July 2026 as AI stocks sold off, forcing it to unwind most holdings. Citadel bought the portfolio at a discount the WSJ says was already paying off. The speed of the decline left no room to reposition — concentration and leverage amplified the damage.