Recent heavy losses on AI infrastructure holdings triggered margin calls at Leopold Aschenbrenner’s Situational Awareness hedge fund, prompting it to sell most of its leveraged public equities portfolio to Citadel rather than secure fresh investor commitments. This fire sale, which shrank assets from roughly $45 billion to around $10 billion, followed failed or stalled outreach to existing backers and prime brokers amid the broader AI stock rout. With the August 31 deadline approaching and no confirmed new capital raised, traders see limited near-term prospects for a successful raise, though private stakes and rapid market rebounds remain potential swing factors.